Which of the Following Terms Refers to the Recording of Financial

question 82

Multiple Choice

Which of the following terms refers to the recording of financial transactions?

• A) Bookkeeping
• B) Accounting
• C) Controlling
• D) Budgeting
• E) Auditing

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Definitions:

Income Statement Amounts

The monetary values of revenue, expenses, gains, and losses reported in the income statement.

Common-Size Percentages

Financial analysis tool that converts each line item of financial statements into a percentage of a common base figure to allow for easy comparison.

Balance Sheets

Financial statements that show a company's financial position, detailing assets, liabilities, and equity at a specific point in time.

Inventory Turnover

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