The Overriding Criterion in Evaluating the Accounting Information to Be

question 40

Multiple Choice

The overriding criterion in evaluating the accounting information to be presented is

• A) fairness.
• B) legality.
• C) management's goals.
• D) decision usefulness.

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Definitions:

General Ledger

The main accounting record of a company which uses double-entry bookkeeping, consisting of all balance sheet and income statement accounts.

Sales Journal

A specific type of journal used to record the sales of goods or services on credit.

General Journal

An accounting ledger where all types of transactions are initially recorded before being transferred to specific accounts.

Subsidiary Ledger

A detailed ledger that contains account information relating to specific areas like accounts receivable or payable, supporting the general ledger.