In the General Ledger,a Separate "Account" Is Maintained for Each

question 56

Multiple Choice

In the general ledger,a separate "account" is maintained for each:

• A)Type of asset and liability and for each element of owners' equity.
• B)Business transaction.
• C)Business day.
• D)Journal entry.

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Definitions:

Current Ratio

A liquidity ratio measuring a company’s ability to pay short-term obligations with its short-term assets.

Cash Dividends

Payments made by a corporation to its shareholders from its profits.

Short-term Investments

Financial assets expected to be converted into cash typically within a year, such as stocks or government bonds.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a period.