You Will Never Find the Following Combination of Accounts in a Journal

question 82

Multiple Choice

You will never find the following combination of accounts in a journal entry except

• A) Accounts Receivable and Purchases.
• B) Accounts Payable and Sales.
• C) Sales Returns and Allowances and Accounts Payable.
• D) Purchases Returns and Allowances and Accounts Payable.
• E) Accounts Payable and Accounts Receivable.

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Definitions:

Activity Variance

The difference between budgeted and actual activity levels, impacting costs and operational efficiency.

Budgeting

Drafting a blueprint for budgeting your resources, specifying a company's fiscal and operational targets.

Planning Budget

A budget prepared for a particular level of activity that estimates revenues, expenses, and resources over a period.

Administrative Expenses

Costs related to the general operation of a business, such as salaries of executive officers, legal and accounting fees.