In a Perpetual Inventory System,the Credit Columns of a Typical

question 136

Multiple Choice

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

• A) Merchandise Inventory column and Cash column
• B) Other Accounts column and Accounts Payable column
• C) Merchandise Inventory column and Accounts Payable column
• D) Other Accounts column and Cash column

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Definitions:

Adjusting Entries

Entries made in the general journal at the close of an accounting period to update the ledger accounts for any income or expenses incurred but not yet recorded.

Condensed Worksheet

A simplified financial statement that consolidates and presents a company’s financial status in a concise format.

Accounting Cycle

The series of steps followed by an organization to track and manage financial transactions, from the initial transaction to the closing of the books.

Special Journals

Special journals are accounting journals designed for recording specific types of transactions in a detailed manner, such as sales or purchases, to streamline the accounting process.