The Process of Entering an Amount on the Left Side

question 127

Short Answer

The process of entering an amount on the left side of an account is called ____________ the account and making an entry on the right side is called _________________ the account.

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Definitions:

Current Liabilities

Short-term financial obligations that a company is expected to pay within one year or one operating cycle, whichever is longer.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity levels for operating needs.

Total Assets

The sum of all assets owned by a company, indicating the total resources at its disposal.

Secured Debt

A debt that is backed by collateral, providing the lender a claim to the asset if the loan is defaulted.