For Each of the Following General Ledger Accounts Identify

question 54

Essay

For each of the following general ledger accounts identify:
(a) the type of account (Asset, Liability, Shareholders Equity, Revenue, Expense),
(b) the debit and credit effects, and
(c) the normal account balance.

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Definitions:

Forecasting Error

The difference between the actual outcome and the predicted value in a forecast.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company's fixed versus variable costs.

Variable Costs

Expenses that change in proportion to the level of production or sales, such as raw materials and labor costs.

Operating Leverage

Operating leverage describes the extent to which a company can increase profits by increasing sales, indicating the proportion of fixed costs to variable costs.