Question

The sales journal is generated from the sales transaction file.
A) True
B) False

Answer 1

The correct answer is A) True.

Step-by-step explanation:

The sales journal is indeed generated from the sales transaction file. The sales transaction file contains all the individual sales transactions that have occurred within a given period. This file includes information such as the date of the sale, the customer's name or ID, the item(s) sold, the quantity sold, and the corresponding amounts. From this sales transaction file, the sales journal is created. The sales journal is a specialized book or electronic record that summarizes the sales transactions for a specific period. It organizes and consolidates the information from the sales transaction file into a format that is easier to analyze and understand.

Answer 2

The statement is true; the sales journal is indeed generated from the sales transaction file, serving as a record of credit sales that informs posting to the general ledger and customer accounts.

Step-by-step explanation:

The statement that the sales journal is generated from the sales transaction file is true. In accounting, the sales journal is one of the special journals used to record the credit sales of a business. This journal is periodically compiled from the sales transaction file, which is a detailed list of sales invoices and credit sales transactions that have occurred within a certain timeframe.

The sales journal will include information like the date of the sale, the customer's name, invoice number, and the amount of the sale. It is then used to post transactions to the general ledger and to update customer accounts in the accounts receivable ledger.