The General Ledger of a Business

question 109

Multiple Choice

The general ledger of a business

• A)Is a collection of all accounts used in a company's information system
• B)Must be kept in a computer file
• C)A and B
• D)Is a set standard not affected by a company's size and diversity
• E)A,B and D

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Definitions:

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.

Accrued Expenses

Expenses that have been incurred but not yet paid for, often recognized in accounting through an adjusting entry.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's value over time.

Record Depreciation Expense

The process of allocating the cost of tangible assets over their useful lives to accurately reflect their consumption and wear and tear.