In the Accounting Cycle, Which of the Following Involves the Measurement

question 145

Multiple Choice

In the accounting cycle, which of the following involves the measurement stage?

• A) Analyzing the business transactions from source documents
• B) Posting journal entries to the ledger
• C) Preparing the financial statements
• D) Adjusting the accounts

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Definitions:

Journalizing

The process of recording a transaction in the journal.

Adjustments and Closing Entries

The journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate periods.

Ledger

A book or database in which financial transactions are recorded, organized by account.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.