To Prepare the Balance Sheet, All Necessary Numbers Can Be

question 116

True/False

To prepare the balance sheet, all necessary numbers can be found in the balance sheet columns of the work sheet, including ending capital.

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Definitions:

Accrual Basis

A financial recording technique that documents incomes and expenses as they are incurred or earned, without taking into account the timing of cash transactions.

Cash Basis

An accounting method wherein revenues and expenses are recorded when they are actually received or paid, rather than when they are incurred.

General Journal

A chronologically organized accounting record where financial transactions are initially recorded, making it the first point of entry for any transaction in the accounting system.