Which of the Following Is True of a Sales Journal

question 72

Multiple Choice

Which of the following is true of a sales journal prepared under the perpetual inventory system?

• A)It includes a Cost of Goods Sold DR,Merchandise Inventory CR column.
• B)It records both cash and credit sales transactions.
• C)All transactions recorded in a sales journal also are entered in the general journal.
• D)It cannot be used with a perpetual inventory system.

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Definitions:

Economic Profits

Profits calculated after considering both explicit and implicit costs, representing the total opportunity costs.

Loses

Refers to the situation where expenses surpass revenues, resulting in negative financial performance.

Long-Run Monopolistically Competitive Equilibrium

The condition in which firms in a monopolistically competitive market earn just enough revenue to cover all costs, including a normal profit, in the long term.

Enter Market

The act of beginning to offer goods or services in a particular marketplace.