A Record in Which the Effects of Transactions Are First

question 91

Multiple Choice

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

• A) Account.
• B) Trial balance.
• C) Journal.
• D) T-account.
• E) Balance column account.

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Definitions:

Consolidated Income Statement

A financial statement that combines the income statements of a parent company and its subsidiaries, presenting the financial performance of the entire group as a single entity.

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal annual amounts.

Impairment

A decrease in the recoverable value of an asset below its carrying amount on the balance sheet, necessitating a write-off.

Goodwill

The intangible asset that arises when a company acquires another for a price higher than the fair value of its identifiable tangible and intangible assets.