Which of the Following Defines a Transaction File

question 40

Multiple Choice

Which of the following defines a transaction file?

• A) The equivalent of a subsidiary ledger in a manual system
• B) A file that has one record for each inventory item
• C) The equivalent of a journal in a manual system
• D) The equivalent of a reference file in a manual system

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Definitions:

Par Preferred Stock

The value assigned to preferred stock for accounting purposes, not necessarily its market value.

Common Share

A type of equity security that represents ownership in a corporation, giving holders voting rights and dividends.

Stockholders' Equity

The portion of the balance sheet that represents the equity interest of shareholders in the company, often referred to as shareholders' equity.

Par Value Preferred Stock

The face value of preferred shares, which helps determine the dividend payments and liquidation preference.