Which of the Following Is Not True Regarding the General

question 23

Multiple Choice

Which of the following is not true regarding the general ledger account for Cash?

• A)The balance of the account indicates the amount of cash owned by the business on a particular date.
• B)Each debit entry in the Cash account represents a cash receipt.
• C)Debit entries are made before credit entries.
• D)Credit entries in the Cash account represent cash payments.

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Definitions:

Insignificant Influence

A situation where an investor does not have enough impact on a business to affect its decisions or policies.

Dividend Revenue

Income received from owning shares in a company which distributes a portion of its earnings to its shareholders.

Insignificant Influence

A term describing an investor's lack of power to affect the operating and financial policies of the investee company.

Gain

The financial benefit obtained when the amount earned from a financial transaction exceeds the amount spent.