Provide a Definition of a Secondary Source and an Example

question 13

Essay

Provide a definition of a secondary source and an example thereof.

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Definitions:

Expenses Overstated

A situation where the recorded amount of expenses is higher than the actual amount incurred, causing an understatement of net income.

Adjusting Journal Entry

a bookkeeping entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Net Income

The remaining income of a company once all taxes and costs are deducted from its total revenue.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear, or obsolescence of the asset.