The Primary Purpose of an Accounting System Is to Record

question 18

True/False

The primary purpose of an accounting system is to record how the business activities change the company's balance sheet.

---

Definitions:

Sales Price

The amount of money that a buyer pays to purchase a product or service.

Net Proceeds

Net Proceeds refer to the amount of money received from a sale or transaction after all fees, expenses, and costs have been deducted.

Operating Cycle

The period from the acquisition of inventory to the collection of cash from receivables, reflecting a company's efficiency in managing its working capital.

Readily Marketable

Assets or securities that can be easily sold or converted into cash, typically without significant loss of value.