Asked by Jaime Andres on May 25, 2024
Verified
All of the column totals in the cash receipts journal are posted to general ledger accounts except the
A) Accounts Receivable column total.
B) Cash column total.
C) Sales column total.
D) Other Accounts column total.
Cash Receipts Journal
A financial journal that records all cash inflows to the business, including sales, loan proceeds, and investment income.
General Ledger
A complete record of all financial transactions over the life of a company, serving as the primary data source for the financial statements.
Accounts Receivable
Unpaid amounts by customers to a company for goods or services already rendered.
- Discriminate between the functions of assorted journals within accounting architectures.
- Absorb the mechanism through which transactions are posted from journals to general and subsidiary ledgers.
Verified Answer
LS
Loren SandersMay 31, 2024
Final Answer :
D
Explanation :
The cash receipts journal is used to record all cash received by a business. The column totals of the journal are posted to various general ledger accounts. The Accounts Receivable, Cash, and Sales column totals are all important and need to be posted to their respective accounts. However, the Other Accounts column total is not specific enough and may include a variety of different transactions that need to be individually posted to their appropriate general ledger accounts. Therefore, the correct answer is D, the Other Accounts column total is the only one that is not posted to a general ledger account.
Learning Objectives
- Discriminate between the functions of assorted journals within accounting architectures.
- Absorb the mechanism through which transactions are posted from journals to general and subsidiary ledgers.