The Posting Reference Column of a Journal Is Used to

question 36

Multiple Choice

The Posting Reference column of a journal is used to

• A) record the date on which an amount is posted to a ledger account.
• B) record the number of the ledger account to which the information is posted.
• C) record the number of amounts posted to that ledger account since the beginning of the current accounting period.
• D) record the page number of the ledger account.

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Definitions:

Marginal Cost

It refers to the cost change associated with producing an extra unit of a good or service, important in economic decision-making.

Fixed Cost

Costs that do not vary with the level of output, such as rent or salaries.

Variable Costs

Expenses that directly fluctuate in relation to the volume of production or output.

Profit-maximizing Output

The peak production point for a firm where it attains its greatest possible profit, characterized by the equality of marginal cost and marginal revenue.