Which of the Following Is the Fifth and Last Step

question 76

Multiple Choice

Which of the following is the fifth and last step in the journalizing and posting process?

• A)posting the accounts to the ledger
• B)identifying each account affected and its type
• C)determining whether the accounting equation is in balance
• D)determining whether each account has increased or decreased

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Definitions:

Installment Sales

A method of sale that allows the buyer to make payments over a period of time, while the seller recognizes income as payments are received.

Collectibility

The likelihood or ability of a company to collect payments from customers for goods or services provided, considered when recognizing revenue.

Completed Transaction Method

An accounting method that recognizes revenue and expenses only when a transaction has been completed.

Net Income

Final earnings of a business once all deductions including taxes and expenses are made from the initial revenue.