Quality Accounting Information Should Be Informative as to Both the __________________________________________________

question 74

Short Answer

Quality accounting information should be informative as to both the __________________________________________________ of the current period's earnings and the long-run sustainability of profits.

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Definitions:

Credited

A term reflecting an entry on the right side of a double-entry bookkeeping system that increases liabilities, revenue, or equity accounts, or decreases an asset or expense account.

Withdraws

The act of removing funds from an account or the business use of assets by owners, reducing the capital or equity amounts.

Remaining Partners

The partners who continue the partnership business after one or more partners leave or are removed.

Noncash Assets

Assets owned by a business that are not in the form of cash but can potentially be converted into cash, such as inventory and equipment.