When Posting Entries from a Purchases Journal to the General

question 134

Multiple Choice

When posting entries from a purchases journal to the general ledger,________.

• A) posting references are not shown in the subsidiary ledger
• B) the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger
• C) the amounts in the Other Accounts DR column are posted individually to the specific accounts
• D) entries are posted on a daily basis for all the accounts

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Definitions:

Faithful Representation

A qualitative characteristic of financial information that ensures all figures are complete, neutral, and free from material error.

Neutral

A term often used in analysis or discussions to indicate a position or opinion that is unbiased or not leaning towards any particular side or outcome.

Error

A mistake in the collection, recording, or analysis of data, often leading to incorrect results or conclusions.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards and practices used in Canada to govern financial reporting.