All Transactions

question 80

Multiple Choice

All transactions

• A)are entered in the general ledger and then transferred to the general journal.
• B)are non-economic events that are recorded.
• C)are recorded and reported.
• D)are entered in the general journal and posted to the general ledger.

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Definitions:

Normal Balance

The side (debit or credit) on which increases to the account are recorded, based on the type of account (asset, liability, equity, revenue, expense).

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Permanent/Temporary

Classification of accounts where permanent accounts are balance sheet items carrying over to the next financial period, while temporary accounts are income statement items closed at the end of the period.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, reflecting its nature in accounting equations.