Accountants First Record Transactions in A

question 108

Multiple Choice

Accountants first record transactions in a:

• A)chart of accounts.
• B)trial balance.
• C)journal.
• D)ledger.

---

Definitions:

Financial Statements

Formal reports detailing the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs.

LIFO Inventory Valuation

Last-in, first-out method, an inventory costing method where the last items purchased are the first ones considered sold.

Phantom Profits

Profits that are recorded on the books but do not result in an actual cash benefit, often due to accounting practices or non-cash expenses.