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:

Operating Activities

Business activities related to daily operations, such as selling goods and services, which affect the cash flow of a company.

Cash Inflow

The receipt of cash or cash equivalents into a business from various sources, such as sales, financing, or investments.

Indirect Method

A cash flow statement preparation method that adjusts net income for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Accounts Payable

Liabilities owed to vendors or suppliers for goods or services received that haven't been paid for yet.