The Correct Term for the Process of Recording the Economic

question 65

Multiple Choice

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

• A)Double-entry system
• B)Debit
• C)Credit
• D)Journalizing

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Definitions:

Deferred Expenses

Assets created when purchased in the past before being used to generate revenues; need to be adjusted at the end of the period to reflect the amount of expense incurred by using the assets over time.

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company at using its assets to generate revenue.