The Posting Reference Column in the General Journal Is Used

question 132

Multiple Choice

The posting reference column in the general journal is used to:

• A)indicate if the account is an asset, a liability, or an owner equity.
• B)provide space for the bookkeeper to initial the transaction.
• C)record the page number of the general journal.
• D)record the account number of the general ledger account.

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Definitions:

Direct Labour-based Costing System

A method of cost accounting that allocates expenses based primarily on the direct labor hours incurred in producing a product or delivering a service.

Overstated Costs

A situation where the reported cost of goods sold or expenses are higher than the actual costs incurred, potentially leading to a lower reported profit.

Product Margins

The difference between the selling price of a product and the cost of goods sold, often expressed as a percentage of sales.

Departmental Overhead Rates

Specific overhead rates assigned to different departments within a company, reflecting the unique costs incurred by each department.