Intellectual Capital Refers to Tangible Assets and Resources of an Enterprise

question 44

True/False

Intellectual capital refers to tangible assets and resources of an enterprise that are captured by conventional accounting reports.

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Definitions:

Subsidiary Ledger

A detailed ledger used to track individual transactions related to a specific account, complementing the general ledger.

General Ledger

The primary accounting record of all financial transactions of a company, organized by accounts, used to prepare financial statements.

Owner Withdraws

Transactions where the owner of a sole proprietorship takes out cash or other assets from the business for personal use.

General Journal

A comprehensive record where all financial transactions of a business are originally entered before being transferred to specific accounts in the general ledger.