An Internal Document That Helps Summarize Data for the Preparation

question 9

Multiple Choice

An internal document that helps summarize data for the preparation of financial statements is called a ________.

• A) journal
• B) ledger
• C) worksheet
• D) chart of accounts

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Definitions:

Preferred Stockholders

Individuals or entities that own shares of preferred stock in a company, granting them certain privileges over common stockholders, such as fixed dividends and priority in asset distribution upon liquidation.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Partnership Accounting

The process of managing and recording the financial activities, transactions, and interests of partners within a business partnership.

Drawing Account

An account that tracks the money or goods withdrawn from a business by its owners for personal use.