Midwest Enterprises Uses Special Journals

question 51

Multiple Choice

Midwest Enterprises uses special journals.The company borrowed $10,000 from First State Bank.This transaction is recorded in the ________.

• A) general journal
• B) debt journal
• C) cash receipts journal
• D) cash payments journal

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Definitions:

Tax Burden

The total amount of taxes that an individual or business owes to the government, expressed as a percentage of income or revenue.

Interest Burden

The ratio of interest expenses to earnings before interest and taxes, indicating the proportion of a company's earnings consumed by interest payments.

Return On Sales

A financial ratio that calculates how efficiently a company turns sales into pretax profit.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.