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.

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Definitions:

Opportunity Cost

Overlooking possible gains from other alternatives by dedicating to one path.

Information

A collection of data that is processed, organized, and interpreted to provide value and understanding to the recipient.

Marginal Cost

The extra charge resulting from the production of one more unit of a product or service.

Sushi Restaurant

A dining establishment that specializes in the preparation and serving of sushi, a traditional Japanese dish featuring vinegared rice combined with various ingredients, including seafood and vegetables.