A Posting Reference Column Is Added

question 21

Multiple Choice

A posting reference column is added:

• A)while preparing the trial balance using the ledger.
• B)when the information is transferred from the journal to the ledger.
• C)when the information is transferred from the ledger to the journal.
• D)while preparing the balance sheet using the trial balance.

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Definitions:

Composite Depreciation

A depreciation method that applies a single depreciation rate to a group of assets with different lives, treating them as a single asset.

Group Depreciation

A method of depreciation where a group of assets with similar life spans is depreciated as a single asset.

Depreciable Assets

Assets subject to wear and tear or obsolescence, which are systematically decreased in value over their useful life for accounting purposes.

Alternative Depreciation Method

A depreciation method different from the straight-line depreciation, allowing for a higher depreciation charge in the earlier years of an asset's life.