Which of the Following Statements Is True

question 114

Multiple Choice

Which of the following statements is true?

• A)If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger.
• B)If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances.
• C)Posting occurs when numbers in the general ledger accounts are transferred to the general journal.
• D)If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process.

---

Definitions:

Gross Profit

The financial gain obtained by subtracting the cost of goods sold from the revenue generated from sales, excluding operating expenses.

Sales Discounts

Reductions in the price of goods or services offered by a seller to a buyer to encourage prompt payment.

Sales Returns

Refers to goods that are returned by the customer to the seller after the sale, often due to defects or dissatisfaction.

Operating Expenses

The costs associated with running a business's day-to-day operations, excluding the cost of goods sold.