Today's Automated Accounting Process

question 55

Multiple Choice

Today's automated accounting process:

• A)Helps the user by identifying modules for activities.
• B)Precludes the use of subsidiary ledgers.
• C)Requires manual posting of general journal transactions.
• D)All of the above, A, B, and C, are correct.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update the ledger for items that are not recorded during the operating period.

Financial Statements

Reports that summarize the financial performance and position of a business, including balance sheet, income statement, and cash flow statement.

End-Of-Period Spreadsheet

A financial document used to gather and adjust account information from the ledger in order to prepare financial statements at the end of an accounting period.

Capital Balance

The amount of money that owners have invested in a company, not including any profits or losses.