Every Accounting Transaction Involves an Increase in at Least One

question 72

True/False

Every accounting transaction involves an increase in at least one account and a decrease in at least one other account.

---

Definitions:

Profit Margin

A financial metric that measures the amount by which revenue from sales exceeds costs in a business, expressed as a percentage.

Net Income

The total profit (or loss) of a company after all expenses and taxes have been subtracted from total revenues.

Net Sales

The total revenue generated from sales of goods or services, minus returns, allowances, and discounts.

Price-Earnings Ratio

A measure used to value a company that shows how much investors are willing to pay per dollar of earnings.