Which of the Following Statements Regarding Posting and Classification Is

question 2

Multiple Choice

Which of the following statements regarding posting and classification is correct?

• A)Posting journal entries involves copying the dollar amounts from the ledger into the journal.
• B)If a $100 debit is erroneously posted to an account as a $100 credit,the accounts will be out of balance by $100.
• C)If a $5,000 credit to a stockholders' equity account is misclassified as a $5,000 credit to a liability,the accounting equation will still balance.
• D)If a purchase of supplies on account for $100 is recorded with a debit to Supplies of $10 and a credit to Accounts Payable for $10,the accounting equation will not balance.

Recognize the significance of ending and beginning inventory levels in budget planning.

Grasp the concept of budgeted materials needed based on production and inventory requirements.

Understand how budgeted purchases are determined based on sales, inventory goals, and production needs.

Identify the key aspects of budget preparation, starting from sales forecasting to ending with cash and financial statement budgeting.

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Definitions:

Annual Contract Rate

The interest rate agreed upon in a contract for a year-long period.

Carrying Value

Also known as book value, it is the value of an asset or liability according to a company's financial statements.

Par Value

The nominal or face value of a bond, share of stock, or other security, as stated by the issuer.

Premium

An amount paid periodically to the insurer by the insured for covering their risk or the amount by which a bond or stock sells above its face value.