A Transaction That Is Recorded in the Journal Is Called

question 128

True/False

A transaction that is recorded in the journal is called a journal entry.

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Definitions:

Collateral

Property or assets that a borrower offers to a lender as security for a loan. If the borrower defaults, the lender may seize the collateral to recoup its losses.

Automatic Stay

A legal provision that halts actions by creditors to collect debts from a debtor who has declared bankruptcy, giving the debtor temporary relief.

Chapter 7

A type of bankruptcy that involves the liquidation of a debtor's non-exempt assets by a trustee to pay creditors.

Secured Creditors

Creditors who have a legal right to seize specific assets of the debtor if the debtor fails to repay the debt as agreed.