Layton Inc

question 138

Multiple Choice

Layton Inc. had an operating line of credit of $100,000 and overdrew its bank balance to result in a negative cash balance of $15,000 at year-end. This would be reported in the statement of financial position as

• A)a current liability of $15,000.
• B)a non-current liability of $85,000.
• C)a current asset of $85,000.
• D)a current asset of $(15,000).

Explain the concept and utility of subsidiary ledgers and controlling accounts.

Differentiate between the general ledger and special journals.

Comprehend the process and significance of recording transactions in special and general journals.

Recognize the adaptations of an accounting system to meet specific business needs, including sales taxes and enterprise resource planning (ERP).

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