A Number in the Reference Column in a General Journal

question 108

Multiple Choice

A number in the reference column in a general journal indicates

• A) that the entry has been posted to a particular account.
• B) the page number of the journal.
• C) the dollar amount of the transaction.
• D) the date of the transaction.

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Definitions:

Bond Indenture

A legal contract between a bond issuer and a bondholder that specifies the terms of the bond, such as the interest rate, maturity date, and payment schedule.

Discount Amortization

The process of systematically reducing the discount on bonds payable over the life of the bonds, thereby increasing the carrying amount of the bonds.

Semiannual Interest

Interest that is calculated and paid twice a year, often used in the context of bonds and loans.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.