It Is Necessary to Post

question 15

Multiple Choice

It is necessary to post:

• A) asset and liability entries.
• B) revenue and expense entries.
• C) adjusting entries.
• D) all journal entries.
• E) only retained earning entries

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Definitions:

Ledger

A comprehensive collection of a company's financial transactions, organized by account.

Net Income

The total earnings a company makes after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation after deducting its liabilities, essentially the net worth attributable to shareholders.

Note Payable

A legal obligation representing a loan or promissory note that requires the borrower to repay the lender a certain amount of money at a future date or on demand.