Which of the Following Is True of a Sales Journal

question 16

Multiple Choice

Which of the following is true of a sales journal?

• A)It is a special journal used to record all the cash sales.
• B)It is used to record the sales of capital assets, such as buildings.
• C)It is a special journal used to record credit sales.
• D)It is a general journal that is used to record the adjustments in revenue account.

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Definitions:

Operating Cycle

The time it takes for a company to make an initial outlay of cash to produce goods or services and then receive cash back from selling these goods or services.

Accounting Cycle

The sequence of steps followed in the accounting process to record and summarize financial transactions throughout a period and prepare financial statements.

Journalizing Transactions

The process of recording business transactions in the journal as part of the accounting process.

Correcting Entries

Journal entries made to correct errors found in the financial statements.