What Is the Criterion on Which Business Processes Should Run

question 14

Essay

What is the criterion on which business processes should run?

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Definitions:

Adjusting Entry

An entry made in the books of accounts to correct or allocate incomes and expenditures to the appropriate accounting periods.

Debit

A financial record that leads to a rise in a company's assets or a reduction in its liabilities on the balance sheet.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense.

Prepaid Insurance

An asset account that reflects payments made for insurance coverage periods extending into the future; it is expensed over time as the coverage period lapses.