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:

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which typically reduces the share price.

Par Stock

A system that establishes a minimum level of inventory that must be on hand at all times to adequately serve customer needs.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before any dividends can be distributed to common stockholders.

Par Common Stock

The nominal or face value assigned to common shares by the company's charter, which has little relation to the market value of the shares.