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:

Normal Balance

The side of an account on which increases are recorded, typically the debit side for assets and expenses, and the credit side for liabilities, equity, and revenue.

Account Nature

The characteristic of an account that classifies it as an asset, liability, equity, revenue, or expense.

Periodic Inventory Method

An accounting method where inventory and cost of goods sold are calculated at set intervals, such as yearly or quarterly.

Promissory Note

A formal written promise by a borrower to pay a certain sum at a fixed future date.