Change Affects Individuals in Different Ways

question 58

True/False

Change affects individuals in different ways.

Determine and interpret the gross profit rate.

Understand the difference between multiple-step and single-step income statements.

Identify and classify different types of expenses and losses.

Understand the composition and calculation of net income.

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Definitions:

Debits

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

Credits

Accounting entries that increase liabilities or equity, or decrease assets.

Posting References

Indicators used in accounting to record the transfer of amounts from the journal to the ledger, facilitating the tracking of transactions through the accounting system.

Journal Entry

A record in accounting that documents a transaction in a company's ledger, thereby affecting at least two accounts to keep the accounting equation in balance.