Forms and Papers That Provide Information About a Business Transaction

question 17

Multiple Choice

Forms and papers that provide information about a business transaction are called

• A) ledgers.
• B) accounts.
• C) source documents.
• D) journals.

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Definitions:

Cost of Goods Sold

The immediate expenses associated with manufacturing goods a company sells, comprising costs of materials and labor.

Sales

Refers to the total amount of goods or services sold by a company within a certain period, critical for assessing company performance.

Interest Income

Revenue earned from deposit accounts or investments through the interest paid by the borrower or issuer.

Non-Operating Activities

Financial actions and events that are not tied to a company’s primary, day-to-day operations, such as investing and financing transactions.