Creating an Accountant's Copy of Your Data Allows Your Accountant

question 22

Multiple Choice

Creating an Accountant's Copy of your data allows your accountant to -

• A)check your journal transactions and correct your posted entries
• B)create adjusting journal entries that you can add to your data file
• C)start a new fiscal period for your company records
• D)all of the above

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Definitions:

Common Stock

Common Stock represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without subsequent change for market value fluctuations.

Liquidated

The process of converting assets into cash or using them to pay off liabilities in the event of a business closure, bankruptcy, or when assets are no longer needed.

Subsidiary Company

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.