The Process of Initially Recording a Business Transaction Is Called

question 137

Multiple Choice

The process of initially recording a business transaction is called

• A) closing
• B) posting
• C) journalizing
• D) balancing

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Definitions:

Adjusted Trial Balance

The Adjusted Trial Balance is a list of all accounts and their balances after adjusting entries are made, serving as a checkpoint before financial statements are prepared.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits.

Net Income

Profit calculated as the difference between total revenues and total expenses, indicating the financial performance of a company over a period.

General Ledger

A complete record of all financial transactions over the life of a company, used to compile the financial statements.