Peter,a Private Accountant,enters Every Transaction in a Journal to Reflect

question 159

Multiple Choice

Peter,a private accountant,enters every transaction in a journal to reflect its impact on both assets and on liabilities and owners' equity.He is using

• A) a double-entry accounting system.
• B) a balance sheet.
• C) a financial ratio.
• D) an income statement.
• E) a financial statement.

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Definitions:

Total Sales

Total Sales represents the aggregate revenue a company generates from selling its goods or services within a specific period before any expenses are deducted.

Variable Costs

Costs that vary directly with the level of production or volume of output.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Cost

Expenses that do not change in proportion to the level of production or business activity.