Vendor invoices from the expenditure cycle flow into the general ledger and financial reporting cycle through:
A)the purchases journal directly
B)the purchases journal and then through the accounts payable subsidiary ledger
C)the cash disbursements journal directly
D)the accounts payable subsidiary ledger and then through the cash disbursements journal

Question

Quizplus · Accepted Answer

Vendor invoices from the expenditure cycle are first recorded in the purchases journal, which is then posted to the accounts payable subsidiary ledger. From there, the information is transferred to the general ledger and financial reporting cycle. Therefore, option B - the purchases journal and then through the accounts payable subsidiary ledger - is the best choice.

Vendor Invoices from the Expenditure Cycle Flow into the General