When an Entry Is Posted, the Last Step in the Process

question 86

Multiple Choice

When an entry is posted, the last step in the process is

• A) recording the explanation.
• B) placing the account number in the Post. Ref. column of the journal.
• C) placing the journal page number in the Post. Ref. column of the ledger.
• D) placing the account number in the Post. Ref. column of the ledger.
• E) placing the balance of the account in either the debit or credit column in the ledger.

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Definitions:

Cash Equivalents

Liquid assets that can be quickly turned into a specific amount of cash and have initial maturity times of no more than three months.

Cash Ratio

A financial ratio indicating how well a company can cover its short-term obligations using its liquid assets.

Current Ratio

A financial metric that evaluates a firm's capacity to meet its short-term liabilities, which are due within a year.

Total Current Assets

The sum of all assets of a company that are expected to be converted into cash or used within one year or within the operating cycle.