Which of the Following Statements Is CORRECT

question 50

Multiple Choice

Which of the following statements is CORRECT?

• A) The general ledger contains the accounts that are used to prepare the financial statements.
• B) Some companies use the general ledger instead of a general journal.
• C) When entries are posted from the general journal to the general ledger,the account number is written in the Posting Reference column in the general ledger.
• D) When entries are posted from the general journal to the general ledger,the page number is written in the Posting Reference column in the general journal.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to verify that the total debits equal total credits.

Compound Journal Entry

A compound journal entry is an accounting entry which involves more than two accounts, recording multiple debits and/or credits in a single transaction.

Affects

Influences or changes caused by one factor on another within a business or system.

Accounts

Records within financial accounting that are used to keep track of increases or decreases in specific financial components, like assets, liabilities, equity, revenue, and expenses.