A Ledger Is

question 13

Multiple Choice

A ledger is:

• A) A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.
• B) A journal in which transactions are first recorded.
• C) A collection of documents that describe transactions and events entering the accounting process.
• D) A list of all accounts with their debit balances at a point in time.
• E) A record containing all accounts and their balances used by a company.

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Definitions:

Common Practice

Refers to the habits or ways of doing things that are widely accepted and used within a particular industry or community.

Duty of Care

A legal obligation requiring a person to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Negligent Misstatement

A false statement made carelessly rather than with the intent to deceive, leading to someone's loss.

Economic Loss

Financial loss experienced as a result of another’s actions or failure to act, which can include lost profits, repair costs, and decreased value of property.