Which one of the following statements is accurate?

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The sale of an asset is entered in the Sales Register.The total from the Return Outward Book is debited to the Return Outward Account.The Petty Cash Book balance represents a liability.The Cash Book functions both as a subsidiary book and as a ledger.None of the above.

Explanation

Statement A is incorrect because the sale of an asset is recorded in the Asset Account, not the Sales Register, which is meant for sales of goods. Statement B is false since the total of the Return Outward Book (purchase returns) has a credit balance and is credited to the Purchase Account, not debited to the Return Outward Account. Statement C is wrong because the balance in the Petty Cash Book is an asset, reflecting the cash on hand, not a liability. Statement D is correct because the Cash Book serves as both a subsidiary book (recording cash transactions) and a ledger account (Cash Account).