Every Accounting Transaction Affects Both the Balance Sheet and the Income

question 136

True/False

Every accounting transaction affects both the balance sheet and the income statement.

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Definitions:

Collect

To gather or amass something, often refers to the act of receiving payments or debts.

Depreciation Expense

The allocated cost of a tangible fixed asset over its useful life, reflecting its use and wear and tear over time.

Administrative Salaries

Expenses related to the salaries of employees who perform general administrative duties not directly tied to production or sales.

Interest

The cost paid for borrowing money, typically expressed as a percentage of the total borrowed.