Proof That the Dollar Amount of the Debits Equals the Dollar

question 231

Multiple Choice

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

• A) all of the information from the journal was correctly transferred to the ledger
• B) all accounts have their correct balances in the ledger
• C) only the journal is accurate; the ledger may be incorrect
• D) only that the debit dollar amounts equal the credit dollar amounts

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Definitions:

Net Income

The amount of money a company ultimately earns once it subtracts expenses and taxes from its gross revenue.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds.

Carrying Value

The recorded cost of an asset in a company's books, less any accumulated depreciation or amortization.

Face Value

The nominal value printed on a financial instrument, such as a bond or stock certificate, representing its worth as stated by the issuer.