The Posting Reference Column in the General Ledger Is Used

question 61

Multiple Choice

The posting reference column in the general ledger is used to show the source journal for the transaction. Which of the following symbols is commonly used as a posting reference to refer to page 2 of the cash payments journal?

• A) 2PJ
• B) CPJ2
• C) P2CJ
• D) C2P

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Definitions:

Activity Cost Pools

Aggregations of individual costs, categorised based on the activities performed within an organization.

Batches

Batches refer to groups or sets of goods produced at one time, used in manufacturing to describe the production process or in inventory to describe how products are managed.

Product Margins

The difference between the selling price of a product and its production costs.

Activity Rates

The costs associated with specific activities, used in activity-based costing to allocate expenses to products or services based on the activities required for their production or delivery.