The Process of Transferring General Journal Entry Information to the Ledger

question 84

Multiple Choice

The process of transferring general journal entry information to the ledger is called:

• A)Double-entry accounting.
• B)Posting.
• C)Balancing an account.
• D)Journalizing.
• E)Not required unless debits do not equal credits.

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Definitions:

Units Produced

The total number of units created by a production process over a specific period of time.

Break Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Common Fixed Expenses

Common fixed expenses are costs that remain constant for a given period regardless of the level of production or sales, and are shared among multiple product lines or departments within a company.

CM Ratio

The contribution margin ratio, representing the portion of sales that contributes to covering fixed costs after variable costs have been paid.