How Are Credits Distinguished from Debits in the Journal

question 121

Multiple Choice

How are credits distinguished from debits in the journal?

• A) A line separation
• B) A different color
• C) Indenting
• D) There is no distinction.

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Definitions:

Salaries Payment

The process of distributing money to employees as compensation for their work.

Prepaid Subscriptions

Payments made in advance for subscription-based services, recognized as an asset until the service period has been fulfilled.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, used as the financial year by many countries and organizations.

Adjustment

A modification made to accounts or financial statements to correct them or to reflect changes in economic circumstances.