A Column in Journals and Ledger Accounts Used to Cross

question 159

Multiple Choice

A column in journals and ledger accounts used to cross reference journal and ledger entries is the:

• A) Account balance column.
• B) Debit column.
• C) Posting reference column.
• D) Credit column.
• E) Description column.

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Definitions:

LIFO Inventory

Last-In, First-Out, an inventory valuation method that assumes the last items added to inventory are the first sold, affecting the reported income and inventory value.

FIFO Inventory

FIFO Inventory, or First-In, First-Out, is an inventory valuation method where the goods first purchased or produced are the first to be sold.

LIFO Reserve

The difference between the cost of inventory calculated under the Last In, First Out (LIFO) method and its cost calculated under the First In, First Out (FIFO) method.

Income Changes

Alterations in a company's earnings or an individual's income, which may result from different factors like operational adjustments, market conditions, or policy changes.