The Total of the Individual Account Balances in the Accounts

question 138

Multiple Choice

The total of the individual account balances in the accounts receivable master file should equal the

• A) total sales for the period.
• B) balance of the sales account in the general ledger.
• C) total sales less the total cash received for the period.
• D) balance of the accounts receivable account in the general ledger.

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Definitions:

Year-End Closing Process

The Year-End Closing Process involves finalizing a company's financial activities for the year, updating accounts, and preparing financial statements.

Net Income

The final earnings of a corporation once all costs, taxes, and expenses are subtracted from gross revenue.

Retained Earnings

Retained Earnings are the portion of a company's profits that are not distributed as dividends to shareholders but are instead reinvested in the business.