In a Manual System, Processing Includes Journalizing Transactions, Posting the Accounts

question 8

True/False

In a manual system, processing includes journalizing transactions, posting the accounts, and preparing the financial statements.

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Definitions:

Explicit Costs

Direct payment made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net income of a company determined by subtracting total expenses from total revenues, according to generally accepted accounting principles.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing profit beyond the normal rate of return.

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.