Which Statement About the Journal Is NOT True

question 19

Multiple Choice

Which statement about the journal is NOT true?

• A)The journal lists transactions in chronological order.
• B)The journal entry lists debits before credits.
• C)The journal entry shows a complete transaction in one place.
• D)The journal entry shows the balance in each account.

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Definitions:

Treasury Stock

Treasury stock refers to shares that were issued and later reacquired by the issuing corporation, not considered while calculating earnings per share or dividends.

Stated Value

The value assigned to no-par value stock by the company's board of directors, which becomes the legal capital per share that must be retained in the business.

Net Loss

The amount by which expenses exceed revenues in a given period, resulting in a negative net income.

Par Value

The nominal or face value of a stock or bond, representing the value stated in the corporate charter or on the certificate.