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Buying Securities on the Margin Requires People Interested in Buying

question 29

True/False

Buying securities on the margin requires people interested in buying stocks to pay only a percentage (a margin)of the actual purchase price.The rest is borrowed from someone else,usually an investor's broker.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company.

Debit Balances

Accounts on the left-hand side of a double-entry bookkeeping system that typically signify assets or expenses.

Permanent Account

An account that carries its ending balance over from one accounting period to the next, such as assets, liabilities, and equity accounts.

Doubtful Accounts

Accounts receivable that a company believes it may not be able to collect, often leading to the creation of an allowance for doubtful accounts.

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