The Procedure of Transferring Journal Entries to the Ledger Accounts

question 79

Multiple Choice

The procedure of transferring journal entries to the ledger accounts is called

• A) journalizing.
• B) analyzing.
• C) reporting.
• D) posting.

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Definitions:

Net Income

The total earnings of a company after deducting all costs and expenses from revenue, indicating the company's profitability.

Liquidation

The process of closing a business by selling its assets to pay off its liabilities, with any remaining proceeds distributed to shareholders or owners.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders’ equity at a specific point in time, providing insights into its financial condition.