The Process of Focusing on Only the Most Important Factors

question 248

Multiple Choice

The process of focusing on only the most important factors to explain a phenomenon is called

• A)abstraction.
• B)marginal analysis.
• C)rational choice.
• D)controlled experimentation.
• E)the trade-off between efficiency and equality.

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Definitions:

General Ledger

A comprehensive collection of a company's accounts, including all transactions and balances, used for preparing financial statements.

Special Journal

A type of accounting journal designed for recording a specific kind of transaction in a more efficient and detailed manner.

General Journal

A comprehensive record of all financial transactions of a company, listed in chronological order.

Correcting Entry

A correcting entry in accounting is a journal entry made to amend a previously recorded error in the financial statements.