Which of the Following Statements Is Correct

question 12

Multiple Choice

Which of the following statements is correct?

• A) A subsidiary ledger requires double entry accounting.
• B) A business with three debit customers would need to set up an accounts payable subsidiary ledger.
• C) A manual accounting system that has both a control account and a subsidiary ledger for creditors requires transactions for creditors to be recorded twice.
• D) Every business must have special journals to record transactions for returns of goods.

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Definitions:

Sales

Sales refer to the total amount of goods or services sold by a company, and is a primary source of revenue in a business's income statement.

Production Jobs

Positions or roles focused on creating goods or managing the production process within a manufacturing or production environment.

Profit

The financial gain achieved when revenues generated from business activities exceed the expenses, costs, and taxes associated with sustaining the business.

Work in Process

Goods that are in the production process but are not yet completed, reflecting a stage between raw materials and finished goods.