Posting

question 8

Multiple Choice

Posting

• A) Accumulates the effects of ledger entries and transfers them to the general journal.
• B) Is done only for income statement activity; activity related to the statement of financial position does not require posting.
• C) Is done once per year.
• D) Transfers journal entries to the ledger accounts.

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Definitions:

Inventory Cost

The total cost incurred to procure, produce, and store unsold goods, including raw materials, labor, and overhead expenses.

Leased Lathe

An asset acquired for use over a predetermined period under a lease agreement, specifically referring to a machine tool used for shaping metal or wood.

Credit-Approved Customers

Customers who have been evaluated and approved for credit based on their creditworthiness by a lending institution or business.

Executory Costs

Expenses related to the operation of a leased asset that are typically paid by the lessee, such as insurance, maintenance, and taxes.