The Posting Reference Columns Are Used to Trace Transactions from the Accounts

question 173

Multiple Choice

The Posting Reference columns are used to trace transactions from the accounts to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the account?

• A) (1) the amount of the debit or credit and (2) the journal page number
• B) (1) the journal page number and (2) the date of the transaction
• C) (1) the journal page number and (2) the account number
• D) (1) the account number and (2) the journal page number

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Definitions:

Net Loss

The amount by which company expenses exceed its revenues over a specified period, indicating a loss in financial performance.

Post-Closing Trial Balance

A list of all accounts still open after closing entries are made, used to ensure that debits equal credits.

Capital

The wealth in the form of money or other assets owned by a person or organization, or available for a purpose such as starting a company or investing.

Purchases

The total cost of goods acquired by a company for resale or use in production during an accounting period.