It Is Impossible to Run a Company Effectively Without the Ability

question 265

True/False

It is impossible to run a company effectively without the ability to read and understand basic accounting reports and financial statements.

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Definitions:

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so that they comply with the accrual concept.

Journal Entries

Records of financial transactions in the order they occur, which are then posted to the appropriate accounts.

Debits

Entries in accounting that increase an asset or expense account, or decrease equity, liability, or revenue accounts.

Credits

Accounting entries that represent an increase in liabilities or revenues, or a decrease in assets or expenses.