The First Step of Journalizing an Entry Is To

question 1

Multiple Choice

The first step of journalizing an entry is to:

• A) post the accounts to the ledger.
• B) identify each account affected and its type.
• C) determine whether each account is increased or decreased.
• D) record the transaction in the journal, including a brief explanation.

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Definitions:

Consolidation Entry S

A journal entry that combines the financial statements of a parent company with its subsidiaries to present as a single entity.

Consolidation Worksheet

A tool used in preparing the consolidated financial statements, facilitating the combination of financial information.

Purpose

The reason for which something exists or is done, made, or used.

Acquisition Method

An accounting method used to account for business combinations, focusing on recognizing and measuring the assets acquired, liabilities assumed, and any non-controlling interest in the acquiree.