Each Transaction Must Be Analyzed in Terms of Its Effect

question 2

True/False

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

---

Definitions:

Labor-Intensive

Describes industries or businesses that require a large amount of labor to produce goods or provide services, often resulting in higher labor costs.

Capital-Intensive

Refers to businesses or industries that require significant amounts of capital investment in machinery, equipment, or large-scale infrastructure to produce goods or services.