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:

Effective Annual Return

The interest rate on an investment on an annual basis, accounting for the effect of compounding more than once per year.

Nominal Interest

The rate of interest before adjustments for inflation; the stated interest rate on a financial product.

Compounding

The process of finding the future value of a single payment or series of payments.

Amortized

The process of gradually paying off debt through a series of fixed payments over time, which cover both principal and interest.