Which of the Following Sequences Is the Normal Sequence of Flow

question 39

Multiple Choice

Which of the following sequences is the normal sequence of flow of accounting data?

• A) Ledger → Journal → Source document
• B) Journal → Source document → Ledger
• C) Source document → Journal → Ledger
• D) Source document → Ledger → Journal

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Definitions:

Repayment

The act of paying back money previously borrowed from a lender.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue; also referred to as net profit.

Net Cash

The amount of cash available after accounting for cash inflows and outflows over a period.