Which General Ledger Account Affects the Most Financial Statement Cycles

question 15

Multiple Choice

Which general ledger account affects the most financial statement cycles?

• A) cash account
• B) retained earnings account
• C) income tax expense and liability accounts
• D) inventory account

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Definitions:

Notes Payable

Financial obligations or loans evidenced by promissory notes that a company or individual owes and is required to pay in the future.

Salaries Expense

Salaries expense represents the total amount paid to employees for services rendered during a specific period, including wages, bonuses, and other compensation.

Prepaid Insurance

An asset account that represents insurance payments made in advance, which are expensed as the insurance coverage period lapses.

Transaction Chronologically

Recording of transactions in the order of their occurrence over time.