What Is the Recommended Order That Special Journals Should Be

question 34

Multiple Choice

What is the recommended order that special journals should be posted to the subsidiary ledgers and the general ledger?

• A) Sales, Purchases, Cash Receipts, Cash Payments
• B) Sales, Purchases, Cash Payments, Cash Receipts
• C) Sales, Cash Receipts, Purchases, Cash Payments
• D) No special order is recommended

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, including indirect materials, indirect labor, and other production-related expenses.

Prime Cost

The combined cost of direct materials and direct labor that are directly involved in the manufacturing of a product.

Direct Labour

The expenses related to workers who are directly engaged in creating products or services.