When Using a Revenue Journal

question 104

Multiple Choice

When using a revenue journal:

• A) both a "Fees Earned" and an "Accounts Receivable" column are included.
• B) both cash sales and sales on account are posted to the journal.
• C) revenues are normally recorded when the company sends customer invoices.
• D) postings to customer accounts are done at month end.

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Definitions:

Inventory

A company's stock of goods or materials, which are held for the purpose of resale or in the production process.

Loan

A sum of money that is borrowed, which must be paid back with interest.

Cash Flows

The total amount of money being transferred into and out of a business, affecting the organization's liquidity, financial health, and operational capabilities.

Marketable Securities

Financial assets that can be quickly converted into cash at a known price.