In a Lean System,there Are Fewer Transactions to Record Than

question 46

True/False

In a lean system,there are fewer transactions to record than there are in a traditional system.

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Definitions:

Indirect Method

In accounting, this method is used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions.

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services awaiting payment.

Accrued Liabilities

Liabilities recorded on a company's balance sheet for expenses that have been incurred but not yet paid, capturing the company's financial obligations at a particular point in time.

Prepaid Expenses

Costs paid in advance for goods or services, which are recorded as assets to be used or recognized as expense over time.