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Explain Debits and Credits and Their Role in the Accounting

question 98

Essay

Explain debits and credits and their role in the accounting system of a business.


Definitions:

Probability

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1, where 1 indicates certainty.

Premium

A premium refers to the additional amount paid for a product, service, or insurance policy over and above its basic cost.

Risk Reduction

Strategies or actions taken to decrease or mitigate the level of risk.

Expected Value

A statistical measure that calculates the average outcome of a random variable or process, factoring in all possible values and their probabilities.

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