Referring to an Accounting System, Inputs Refers to Events and Transactions

question 223

True/False

Referring to an accounting system, inputs refers to events and transactions that occur within the business, while outputs refers to the journal entries and ledger categorization that occurs after the events and transactions are recorded.

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Definitions:

Current Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its current assets by comparing its net sales to its current assets.

Accounts Receivable

Money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Inventory Management

The supervision of non-capitalized assets (inventory) and stock items, including ordering, storing, and utilizing a company's inventory.

Return on Common Equity (ROCE)

A measure of a company's profitability that takes the shareholder's equity into account.