Multiple Choice
When an agent and an applicant for a life insurance policy fill out and sign the application, which journal entry should the insurance company record upon receiving the initial premium payment?
2. Transaction Analysis
Journal Entries: Debits and Credits
Multiple Choice
A(n) ____ is a record of checks, ATM transactions, deposits, and charges on an account.
A
general ledger
B
bank statement
C
trial balance
D
journal entry
Verified step by step guidance1
Step 1: Understand the context of the question. The problem is asking for the term that describes a record of checks, ATM transactions, deposits, and charges on an account.
Step 2: Review the options provided: 'general ledger,' 'bank statement,' 'trial balance,' and 'journal entry.' Each term has a specific meaning in Financial Accounting.
Step 3: Clarify the concept of each term: A 'general ledger' is a complete record of all financial transactions of a company. A 'trial balance' is a summary of all ledger accounts to ensure debits equal credits. A 'journal entry' is a record of a single transaction in the accounting system. A 'bank statement' is a document provided by a bank that lists all transactions in a specific account over a period.
Step 4: Match the description in the question to the correct term. The question specifies a record of checks, ATM transactions, deposits, and charges on an account, which aligns with the definition of a 'bank statement.'
Step 5: Conclude that the correct answer is 'bank statement' based on the matching description and the definitions of the terms provided.
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