A Company's Ledger Is

question 169

Multiple Choice

A company's ledger is:

• A) A list of all accounts a company uses with an assigned identification number.
• B) A collection of documents that describe transactions and events entering the accounting process.
• C) A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.
• D) A journal in which transactions are first recorded.
• E) A record containing all accounts and their balances used by the company.

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Definitions:

Financing Activity

Financial transactions and events that affect the equity and debt structure of a company, including borrowing, repaying debt, and issuing or buying back shares.

Operating Activity

Transactions and events related to the core business operations of a company, including revenue generation and expenses related to producing goods and services.

Gain

A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate the cash from operating activities.