Which of the Following Statements Is Not Necessarily True About

question 20

Multiple Choice

Which of the following statements is not necessarily true about a journal entry?

• A) Liabilities are indented.
• B) An explanation follows the journal entry.
• C) The Post. Ref. column is left blank until the entry is posted.
• D) All debits must be recorded before any credits.

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Definitions:

Sales

The total revenue earned from selling goods or services over a specific time period.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing shareholders' ownership interest.

Residual Income

The net income that an investment or business generates above the minimum required return, often used in performance evaluation.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross income, but before taxes and interest are deducted.