When an Entry Is Made in the General Journal

question 1

Multiple Choice

When an entry is made in the general journal,

• A) the accounts to be credited should be indented.
• B) the first account entered should be indented.
• C) liability,capital,and revenue accounts should be indented.
• D) asset accounts should be indented.

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Definitions:

Corporate Charter

A legal document issued by a governmental authority that establishes a corporation and outlines its rights and obligations.

Initial Capital

The amount of money used to start a business or investment.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Corporate Capital

Funds and resources that a corporation utilizes for operations, growth, and to undertake new projects, including both equity and debt capital.