The Correct Order of Steps in the Manual Recording Process

question 28

Multiple Choice

The correct order of steps in the manual recording process is:
I Post transactions to the ledger
Ii Record transactions in the journal
Iii Prepare financial statements
Iv Record adjusting entries

• A) i, ii, iii, iv
• B) iv, ii, i, iii
• C) i, iv, iii, ii
• D) ii, i, iv, iii

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Definitions:

Current Yield

Current yield is the annual income (interest or dividends) divided by the current price of the security.

Coupon Rate

The percentage of interest returned by a bond annually, measured against its face value.

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if it is held until its maturity date, including all interest payments and the repayment of principal.

Coupon Rate

Yearly interest payment on a bond, specified as a percentage of its listed value.