Accounting - Study Mode

[#2631] The process of entering all transactions from the Journal to Ledger is called
Correct Answer

(A) Posting

Explanation

Solution: The process of entering all transactions from the Journal to Ledger is called Posting. Posting refers to the process of transferring entries in the journal into the accounts in the ledger. Posting to the ledger is the classifying phase of accounting.

[#2632] The following is a statement showing the financial status of the comapany at any given time
Correct Answer

(C) Balance Sheet

Explanation

Solution: Balance Sheet is a statement showing the financial status of the comapany at any given time. The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company's financial statements.

[#2633] The following is a statement of revenues and expenses for a specific period of time
Correct Answer

(C) Profit & Loss statements

Explanation

Solution: Profit & Loss statements is a statement of revenues and expenses for a specific period of time, usually a fiscal quarter or year.

[#2634] Balance sheet is a statement of
Correct Answer

(D) All of the above

Explanation

Solution: Balance sheet is a statement of Assets, Liabilities and Capital.

[#2635] Balance sheets are prepared
Correct Answer

(D) Annually

Explanation

Solution: Balance sheets are prepared annually. It lists the current and fixed assets on the left side of the sheet and liabilities and owner's equity (capital) on the right.