The Ledger Is

question 119

Multiple Choice

The ledger is:

• A) a group of accounts that records results from business transactions.
• B) a tool used to ensure that all accounts have normal balances.
• C) a chronological record of the day's transactions.
• D) a tool used to ensure that debits equal credits.

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Definitions:

Accounts Receivable

Financial obligations customers have towards a business for received goods or services that remain unpaid.

Factory Overhead

Refers to the indirect costs associated with manufacturing, including costs for utilities, rent, and maintenance of equipment not directly tied to the production of goods.

Labor Costs

The total sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer.

Production Orders

Instructions or commands to start the manufacturing process of goods, often specifying amounts and types of products.