A Journal Entry Affecting Three or More Accounts Is Called

question 106

Multiple Choice

A journal entry affecting three or more accounts is called a:

• A)multi-level entry.
• B)multi-step entry.
• C)compound entry.
• D)double entry.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales activities within a certain range.

Break-Even Point

The point at which the amount of goods produced or sold results in revenues that are exactly equal to the costs, leading to no profit or loss.

Contribution Margin Ratio

The percentage of revenue remaining after deducting variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.