If a Business Uses the Periodic Inventory System,the Sales Journal

question 137

Multiple Choice

If a business uses the periodic inventory system,the sales journal will ________.

• A) record both the cash and credit sales
• B) include a Purchase DR and Account Receivable CR column
• C) exclude the Accounts Receivable DR and Sales Revenue CR column
• D) exclude the Cost of Goods Sold DR and Merchandise Inventory CR column

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used internationally.

Direct Method

An accounting method used in cash flow statements that lists major categories of gross cash receipts and payments, providing a clearer picture of a company's cash flow from operating activities.

Cash Flow Statement

A report detailing how variations in balance sheet positions and income streams influence the cash and cash equivalents, segmented into operations, investments, and financial transactions.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.