The Process of Transferring General Journal Information to the Ledger

question 163

Multiple Choice

The process of transferring general journal information to the ledger is:

• A) Double-entry accounting.
• B) Posting.
• C) Balancing an account.
• D) Journalizing.
• E) Not required unless debits do not equal credits.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's wear and tear, decay, or decline in value.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.