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

question 18

Multiple Choice

Which of the following is true of posting entries from a cash payments journal?

• 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 the payment of accounts payable,a checkmark 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:

Fixed Cost

Expenses that do not change in proportion to the level of goods or services produced by a business.

Author Royalties

Author royalties are payments made by publishers to authors for the right to use, produce, or sell the authors' creations, usually a percentage of sales.

Fixed Cost

Expenses that do not change in relation to the level of goods or services produced over a certain period.

Variable Cost

Costs that change in proportion to the good or service that a business produces, such as materials and labor directly involved in production.