Which of the Following Is True of Posting Entries from a Purchases

question 38

Multiple Choice

Which of the following is true of posting entries from a purchases journal to the general ledger?

• A)The posting references are not mentioned in the subsidiary ledger.
• B)The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger.
• C)The amounts in the Other Accounts DR column are posted individually to the specific accounts.
• D)It is done on a daily basis for all the accounts.

---

Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Cost

The incremental cost associated with the production of an additional unit of a product or service.

Total Costs

The complete expenses incurred in the process of producing or providing goods and services, including both fixed and variable costs.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.