​A Transaction Between Two Parties Whereby Goods and Services of Roughly

question 138

Short Answer

​A transaction between two parties whereby goods and services of roughly equivalent value are exchanged is called _______________.

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Definitions:

Prepaid Insurance

An asset account representing insurance payments made in advance of the coverage period, recognized as an expense over time.

Insurance Payable

A liability account that represents amounts owed for insurance premiums that are due but not yet paid.

Proprietorship

A business owned by one individual.

Drawing

Drawing refers to the withdrawal of cash or other assets from a company by the owner(s) for personal use, decreasing the owner's equity in the business.