The Correct Term for the Process of Transferring Amounts from a Book

question 25

Multiple Choice

The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is

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

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Definitions:

Moral Hazard

The situation where one party is more likely to take risks because they do not bear the full consequences of their actions.

Shirking

Avoiding or neglecting duties, responsibilities, or work, often covertly, to reduce personal effort while still receiving compensations or benefits.

Working Diligently

Refers to the act of putting consistent and earnest effort into one's tasks or duties.

Moral Hazard

A scenario in which an entity is prone to engage in risky behaviors knowing that another party will shoulder the consequences of such risks.