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:

Cost System

The method or process by which the costs of products or services are calculated and tracked within an organization.

Completed

Refers to a state or condition where a process, project, or item has been finished entirely and is ready for use or sale.

Transferred Out

Goods or products that have been moved from one stage of production to another or from one department to another within the manufacturing process.

Total Amount

The full sum or aggregate of numbers or quantities, often relating to financial calculations such as revenues, costs, or profits.