Which of the Following Is a True Statement

question 140

Multiple Choice

Which of the following is a true statement?

• A) In most accounting systems, the journal, but not the ledger is computerized.
• B) In the phrase "keeping the books," books refers to the journals and the ledger.
• C) The journal entry shows the balance in each account.
• D) If entries are correctly entered in the journal, the same data does not need to be entered in the ledger.

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Definitions:

Inflation

The rate at which the average cost of goods and services ascends, leading to a decrease in monetary value over time.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future with interest.

Debtors

Individuals or entities that owe money to another entity, typically as a result of borrowing funds.

Business Owners

Individuals who legally possess a company, assume major risks, and enjoy the benefits from its operation and growth.