Which of the Following Statements Is CORRECT

question 35

Multiple Choice

Which of the following statements is CORRECT?

• A)When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.
• B)The general ledger contains the accounts that are used to prepare the financial statements.
• C)Some companies use the general ledger instead of a general journal.
• D)When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.

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Definitions:

Effective Rate

The interest rate on a loan or financial product that reflects the compounding periods in a year, presenting a true annual rate of return.

Effective Rate

The interest rate for a loan or financial product recalculated from its nominal rate to represent an annual compound interest rate, paid in arrears.

Nominal Interest

The stated interest rate of a bond or loan, not accounting for inflation or the compounding of interest.

Compounded Quarterly

Interest calculation where the interest earned over a quarter is added to the principal for the calculation of future interest, effectively compounding every three months.