The Fundamental Starting Point of All the Accounting Statements Is

question 59

Multiple Choice

The fundamental starting point of all the accounting statements is the ________.

• A)accounting identity
• B)computing identity
• C)investing identity
• D)financing identity

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Definitions:

Investment Center

A business unit or division that is responsible for its own revenues, expenses, and investments in assets.

Return On Investment

A metric for assessing how well an investment is doing by comparing the net profit to the investment's initial cost.

Direct Expenses

Expenses directly linked to the manufacturing of particular products or services.

Sales

Sales involve the exchange of a product or service for money or its equivalent, constituting a fundamental activity of commercial enterprises to generate revenue.