Which of the following statements is true?
A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account.
B) The posting of an amount recorded in the general ledger can be verified by referring to the account number listed in the posting reference column on that line in the general journal.
C) Business transactions are recorded first in the general ledger, then that information is transferred to the general journal.
D) No explanation is needed for any entry in the general journal.
B
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The expected life, estimated cash flow and investment cost are the three methods used in the evaluation of capital investment proposals
Indicate whether the statement is true or false
Borrowers who retire long-term liabilities debit the liability account for its current book value, credit Cash, and recognizes any difference on the retirement of the debt as a
a. gain when book value exceeds cash disbursement (credit). b. gain when cash disbursement exceeds book value (credit). c. loss when book value exceeds cash disbursement (debit). d. a financing loss (debit). e. cannot be determined from the above information.
Discuss the financial statement impact of capitalizing versus expensing costs.
What will be an ideal response?