Journalizing Does NOT Include

question 45

Multiple Choice

Journalizing does NOT include:

• A)debiting account(s)that are affected.
• B)crediting account(s)that are affected.
• C)posting the debits and credits to the accounts.
• D)entering the date of the transaction.

---

Definitions:

Workout Agreement

A formal contract between a debtor and his or her creditors in which the parties agree to negotiate a payment plan for the amount due on the loan instead of proceeding to foreclosure.

Mortgage Loan

A loan secured by the collateral of real estate property, where the borrower is obliged to pay back with a predetermined set of payments.

Personal Guaranty

A legal commitment by an individual to repay a loan or debt in the event that the primary borrower defaults.

Main Purpose Rule

A legal principle that exempts a guarantor from the requirement of a written contract if the primary intent of the guarantee is to serve the guarantor's own interests.