A Simple Way of Testing Which Period a Sale Should

question 28

Multiple Choice

A simple way of testing which period a sale should be recorded in is to:

• A) trace the sale through to the accounting records.
• B) observe the account receivable clerk record the sale.
• C) vouch the sale to the delivery documentation for the sale of goods.
• D) None of the above

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Definitions:

Journal

A record where all financial transactions are entered initially, before being posted to individual accounts in the ledger, following the double-entry bookkeeping.

Chronologically

In the sequence of time, where events or records are arranged in the order of their occurrence.

Journal Entry

A journal entry is a record in accounting that logs all the financial transactions of a business, capturing their effects on the accounts.

Journal

A record where all financial transactions are initially documented in chronological order.