An Accounting Record of the Balances of All Assets, Liabilities

question 194

Multiple Choice

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

• A) compound entry.
• B) general journal.
• C) general ledger.
• D) chart of accounts.

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Definitions:

Cost of Goods Sold

This refers to the aggregate expense involved in creating a product that a company sells, including direct labor, material costs, and direct factory overhead.

Ending Inventory

The total value of unsold goods that a company has in stock at the end of an accounting period.

LIFO Method

The Last-In, First-Out (LIFO) Method is an inventory valuation approach where the last items added to inventory are assumed to be the first sold, affecting the cost of goods sold and inventory valuation on financial statements.

Effective Tax Rate

The average percentage of income that a business or individual pays in taxes, calculated by dividing total tax expense by taxable income.