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:

Risky Assets

Financial instruments that carry a higher degree of risk compared to risk-free assets, potentially leading to higher returns or losses.

Standard Deviation

Standard deviation is a measure of the dispersion or spread of a set of data points, often used in finance to gauge the volatility of an investment's return over time.

Variance

A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of volatility.

Portfolio Diversification

The practice of investing across different financial assets to reduce risk by spreading exposure.