176.Explain the debt ratio and its use in analyzing a company's financial condition. 177.Explain the recording and posting processes. 178.What is a trial balance? What is its...

176.Explain the debt ratio and its use in analyzing a company's financial condition.

177.Explain the recording and posting processes.

178.What is a trial balance? What is its purpose?

179.Describe the link between a business's income statement, the statement of retained earnings, and the balance sheet.

Essay Questions

180.Identify by marking an X in the appropriate column, whether each of the following items would likely serve as a source document. The first one is done as an example:

YesNo

Ex. Credit card X

a. Credit card receipt

b. Purchase order

c. Invoice

d. Balance sheet

e. Bank statement

f. Journal entry

g. Telephone bill

h. Employee earnings record