The ________ Is Helpful in Preventing Classification Errors If It

question 130

Multiple Choice

The ________ is helpful in preventing classification errors if it accurately describes which type of transaction should be in each account.

• A) general ledger
• B) general journal
• C) trial balance
• D) chart of accounts

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Definitions:

Purchasing Merchandise Inventory

The process of acquiring goods for resale, including the selection, ordering, and receipt of merchandise.

Recording Process

The systematic method of capturing all relevant financial transactions of a business for accounting and reporting purposes.

Perpetual Inventory System

An inventory management method where records of inventory quantities are updated in real-time after every transaction.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.