When the Amount for a Debit Entry in a Journal

question 115

Multiple Choice

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger,

• A)it must be recorded as a debit to that account in the general ledger.
• B)it must be recorded as a credit to that account in the general ledger.
• C)it must be recorded in sum only,without any regard for debit or credit,since the general ledger accounts do not have spaces for debit and credit entries.
• D)it cannot be determined without further information.

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Definitions:

Divisional Contribution Margin

The difference between sales revenue and variable costs in a specific business division, used to cover fixed expenses and contribute to profits.

Divisional Manager

A manager responsible for overseeing a division within a company, including its resources, operations, and performance.

Profit Margin

A financial indicator showing the percentage of income surpassing the cost of goods sold, employed to evaluate a company's financial well-being.

Total Assets

The sum of all assets owned by an entity, including current and non-current assets, used to provide a comprehensive view of the entity's financial strength.