Which of the Following Statements Is Not a Purpose for the Journal

question 213

Multiple Choice

Which of the following statements is not a purpose for the journal?

• A) to show increases and decreases in accounts
• B) to show a chronological order by date
• C) to show a complete transaction in one place
• D) to help locate errors

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Definitions:

Total Assets Ratio

A financial metric that compares the value of a company's total assets to another relevant value, often used in financial analysis to gauge company size or efficiency.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a specific point in time, indicating its financial health.

Cash Coverage Ratio

A financial metric that measures a company's ability to cover its interest obligations with its operating cash flow.

Days' Sales

A financial ratio that measures how effectively a company uses its inventory, often expressed as the average number of days that a company takes to sell its inventory.