The General Journal Was Developed to Organize Transactions by Account

question 57

True/False

The general journal was developed to organize transactions by account.

Recognize the importance of regularly updating QBO Lists and the Chart of Accounts for accurate financial tracking.

Understand and describe the essential strategies for building competitive advantage in organizations.

Analyze and differentiate between the four traditional organization designs: functional, geographic, product, and network.

Understand the concept of geographic design and discuss its benefits and disadvantages.

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Definitions:

LIFO

Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

The total value of a business’s merchandise, raw materials, and products not yet sold at the end of an accounting period.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold, used in accounting to calculate the cost of goods sold.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.