The Correct Term for an Entry Made to the Left

question 134

Multiple Choice

The correct term for an entry made to the left side of an account is

• A)double-entry system.
• B)debit.
• C)credit.
• D)journalizing.

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Definitions:

Goods Held for Resale

Refers to items that a company has in its inventory that are purchased with the intention of being sold to customers rather than being used in the production process.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest.

Operating Expenses

Costs incurred in the normal operations of a business, such as rent, utilities, and payroll.

Net Income

The conclusive financial gain of a company after expenses and taxes have been removed from the initial total revenue.