Which of the Following Is True of Posting from a Sales

question 42

Multiple Choice

Which of the following is true of posting from a sales journal to the general ledger?

• A)Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger.
• B)Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger.
• C)Even though the sales journal is posted monthly to the subsidiary ledger,it is a reliable record of the amount received from each customer.
• D)Under a perpetual inventory system,the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.

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Definitions:

Dividend Payments

Dividend payments are the distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.

Cash Flows

The cumulative total of cash inflows and outflows in a company, influencing its liquid assets.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.