Fill-In-The-Blank Questions Can Be More Challenging Than Multiple-Choice Questions Because

question 41

True/False

Fill-in-the-blank questions can be more challenging than multiple-choice questions because you do not have several responses from which to choose.

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Definitions:

Types of Accounts

Categories into which financial transactions are grouped in accounting, such as assets, liabilities, equity, revenue, and expenses.

Debit or Credit

Debit or credit are terms used in accounting to indicate whether an entry increases or decreases an account balance, impacting the balance sheet and income statement differently.

Normal Balance

The side (debit or credit) of an account that is typically increased. For asset accounts, it is a debit balance; for liability and equity accounts, it is a credit balance.

Two-column Journal

An accounting ledger that features two columns, typically used for recording debits in one column and credits in the other, to maintain financial transactions.