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:

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity, which include the balance sheet, income statement, and cash flow statement.

Income Statement

A report detailing a business's earnings, expenditures, and overall profit or loss for a certain timeframe.

Balance Sheet

A financial briefing that condenses the assets, liabilities, and equity shares of a business at a designated point in time.

Revenues and Expenses

The income generated from normal business operations and the costs incurred to generate that income.