A CR5 Posting Reference in a Subsidiary Ledger Signifies That the the ________

question 49

Multiple Choice

A CR.5 posting reference in a subsidiary ledger signifies that the ________.

• A) posting is transferred from the cash receipts journal, page 5
• B) transaction on page number 5 is credited
• C) amount credited is after a 5% discount
• D) sales on credit is expected to be paid within five days

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Definitions:

Interest

A payment made for the use of borrowed money, usually calculated as a percentage of the principal amount.

Note Receivable

A written promise for amounts to be received by a debtor, where the debtor agrees to pay back the amount, often with interest, by a specified date.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated as sales divided by average accounts receivable.

Net Sales

The total revenue from sales transactions after deducting returns, allowances, and discounts.