In Recording Accounting Transactions, Evidence That a Transaction Has Taken

question 60

Multiple Choice

In recording accounting transactions, evidence that a transaction has taken place is obtained from

• A)source documents.
• B)the Internal Revenue Service.
• C)the public relations department.
• D)the Securities and Exchange Commission.

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Definitions:

Floor Planning

A type of business loan generally made for “big-ticket” items. The business holds the item in inventory and pays interest, but it is actually owned by the lender until the item is sold.

Unsecured Loan

A loan that doesn't require collateral and is based on the borrower's creditworthiness.

Fixed-Rate Loan

A loan where the interest rate remains constant throughout the term of the loan, providing predictability in payments.

Mortgage Broker

A professional intermediary who facilitates the process of acquiring a mortgage loan for individuals or businesses.