The Terms of an Operating Line of Credit and a Notes

question 74

True/False

The terms of an operating line of credit and a notes (loans) payable are disclosed in the notes to the financial statements.

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Definitions:

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.

General Journal

A primary accounting record used to record all business transactions not specifically assigned to a special journal.

Subsidiary Ledgers

Detailed ledgers that contain information about specific accounts, which then summarize into a control account in the general ledger.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods or services received.