A Ledger Is Used To

question 2

Multiple Choice

A ledger is used to:

• A) show increases and decreases in individual accounts, as well as ending balance.
• B) report the results of operations to stockholders, creditors, and managers.
• C) prove that debits equal credits.
• D) make a balance sheet unnecessary.

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Definitions:

Shareholders' Equity

The ownership interest of shareholders in a company's assets, once all liabilities have been subtracted.

Net Working Capital

Net working capital is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Net Fixed Assets

The value of all fixed assets in a company, such as property, plant, and equipment, after accounting for depreciation and amortization.

Cash Flow From Assets

Is the total amount of money being transferred into and out of a business, specifically from its operational, investment, and financial activities.