A Study Found That a Consulting Firm Was Able to Earn

question 15

True/False

A study found that a consulting firm was able to earn greater than 1,000 percent return on its knowledge management system.

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Definitions:

Asset

An item of value owned by a person or company, regarded as having economic value and available to meet debts, commitments, or legacies.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership's claim on the company assets.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Double-Entry Accounting

A system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account.