The First Step in the Journalizing and Posting Process Is

question 63

Multiple Choice

The first step in the journalizing and posting process is to:

• A)post the accounts to the ledger.
• B)identify each account involved 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:

Equity Ownership

Equity ownership denotes the holding of shares in a company, thereby providing the shareholder a claim on a portion of the corporation's assets and earnings.

Corporate Takeover

The acquisition of one company by another, through either direct purchase or by acquiring a majority stake in the target company’s equity.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder equity, indicating how much debt is used to finance assets.