The General Ledger of a Business

question 102

Multiple Choice

The general ledger of a business:

• A)Is a collection of all accounts used in a company's information system.
• B)Must be kept in a computer file.
• C)Is also called the book of original entry.
• D)Is not affected by a company's size and diversity.
• E)Is one of the four financial statements.

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Definitions:

Adjusting Entry

An entry made in the accounting journals at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Financial Statements

Financial Statements are formal records of the financial activities and position of a business, person, or entity, including the balance sheet, income statement, and statement of cash flows.

Yearly Subscriptions

Recurring payments made on an annual basis for continued access to a product or service.

Employer's Payroll Tax

Taxes that employers are required to pay on behalf of their employees, based on the salary the employees earn, including social security and Medicare taxes in the United States.