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Cognitive developmental theory:
Journal Entry
A record in accounting that represents a transaction where debits and credits are equal, crucial for maintaining the accuracy of financial statements.
Liquidation
The process of winding up a company's affairs by selling its assets to pay off its debts.
Capital Deficiency
A situation where a company's liabilities exceed its assets, indicating potential insolvency or a need for additional funding.
Credit Balances
Balances in financial accounts that signify amounts owed to others, which are common in liability accounts, equity accounts, and revenue accounts.
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