The First Step of Journalising an Entry Is To

question 40

Multiple Choice

The first step of journalising an entry is to:

• A)identify the transaction from source documents.
• B)post the accounts to the ledger.
• C)determine whether each account is increased or decreased.
• D)record the transaction in the journal,including a brief explanation.

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Definitions:

Cumulative Gain

The total amount of profit gained over a period of time from an investment or series of investments.

Semi-Annual Dividend

A payment made to shareholders that is distributed twice a year from a company's earnings.

Total Return

The overall gain or loss on an investment over a specified time period, including interest, dividends, and capital gains.

Capital Gain Yield

The rate of return on an investment based on the increase in its market value over the original purchase price, excluding dividends or interest.