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Multiple-Step Income Statement
An income statement format that separates operating activities from non-operating activities, distinguishing between sales and expenses directly related to the business's primary operations and other sources or uses of income.
Chart of Accounts
A systematic list of all account titles and numbers being used by an organization to track financial transactions and prepare financial statements.
Interest Expense
The cost incurred by an entity for borrowed funds, considered as a non-operating expense on the income statement.
Perpetual Inventory System
An accounting method that continuously updates inventory records for each addition or subtraction, reflecting current inventory levels in real-time.
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