A Circular Reference Occurs When a Formula Directly or Indirectly

question 65

True/False

A circular reference occurs when a formula directly or indirectly refers to the cell containing the formula.

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Definitions:

Note Payable

A written promissory note in which the borrower agrees to pay back the lender a certain amount of money at a future date or on demand.

Adjusting Entries

Entries made in the general journal at the close of an accounting period to update the ledger accounts for any income or expenses incurred but not yet recorded.

Condensed Worksheet

A simplified financial statement that consolidates and presents a company’s financial status in a concise format.

Accounting Cycle

The series of steps followed by an organization to track and manage financial transactions, from the initial transaction to the closing of the books.