Entries That Impact the Income Statement Are Called Simple Entries

question 8

True/False

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

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Definitions:

Mark-Up

The markup on goods’ cost intended to defray overhead expenditures and yield profit.

Operating Expenses

The costs associated with the day-to-day operations of a business.

Operating Profit

Earnings derived from a corporation's principal operations, before subtracting interest and taxes.

Cash Discount Rate

A reduction on the invoice price offered by sellers to encourage prompt payment from the buyer.