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

question 129

Multiple Choice

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

• A)Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.
• B)The postings of accounts payable are credits and increase the balance in the individual accounts payable account.
• C)After posting, a check mark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger.
• D)At the end of the month, each column is totaled and the totals, including the Other Accounts DR column, are posted to the specific general ledger accounts.

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Definitions:

Stock Option

A financial derivative that represents a legal right to buy or sell a particular stock at a predetermined price within a specified time period.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Shareholder

An individual or entity that owns shares in a corporation and has certain rights and responsibilities.

Corporate Assets

Assets owned by a corporation, including tangible and intangible items, that are used in the operation of the company.