7. The sales of inventory on account would be recorded in a sales journal. True or False.

47. Which step in the process of measuring external transactions involves determining the effect on assets, liabilities, and shareholders' equity?

a. Analyze the transaction

b. post from journal to the general ledger accounts

c. Obtain information about external transactions from source documents

d. Prepare an unadjusted trial balance.

48. Which of the following is a source document for gathering information about a transaction?

a. General Ledger

b. Trial balance

c. Sales invoice

d. income statement