All of the Following Are Included in the Journal Entry

question 31

Multiple Choice

All of the following are included in the journal entry for a transaction except:

• A)the name of the person making the entry.
• B)the titles of the accounts to be debited and credited.
• C)the date of the transaction.
• D)the dollar amounts of the debit and credit.

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Definitions:

Present Value

The assessed current value of a future monetary amount or series of financial flows, at a given rate of return.

Compound Interest

Refers to the addition of interest to the principal sum of a loan or deposit, where the added interest also earns interest from then on. This effect makes a sum grow at a faster rate compared to simple interest, which is calculated only on the principal amount.

Present Value

The current value of a future cash amount or ongoing cash flows, when calculated with a specific return rate.

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal at the end of each month, allowing the interest in the next month to be calculated on the new total.