The Main Objective of the General Ledger and Financial Reporting

question 11

Multiple Choice

The main objective of the general ledger and financial reporting cycle is to:

• A)Create a trial balance of various accounts as well as adjusted trial balances.
• B)Perform bank reconciliation to verify independently the balances of the cash-based general ledger accounts.
• C)Synthesise and report data that accurately represents business transactions and activities
• D)All of the options are correct.

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Definitions:

Cumulative Earnings

The total amount of net income an entity has earned over its life, up to the current reporting date, not yet distributed to shareholders.

FICA-Medicare

A federal payroll (or employment) tax contribution towards Medicare, part of the FICA taxes in the United States.

Cumulative Earnings

The total amount of net income (or loss) earned by a company over a period of time, often used to measure its financial performance.

OASDI

An acronym for Old-Age, Survivors, and Disability Insurance, which is a comprehensive federal benefits program that provides benefits to eligible American workers and their families.