A Transaction That Causes an Increase in an Asset May

question 45

True/False

A transaction that causes an increase in an asset may also cause a decrease in another asset,an increase in a liability,or an increase in owners' equity.

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Definitions:

Financial Statements

Formal records that outline the financial activities and conditions of a business, organization, or individual, often including the balance sheet, income statement, and cash flow statement.

Service Business

A type of business that provides intangible products or services to customers, rather than physical goods.

Credit Memo

A paper provided by the seller to the buyer, which decreases the total the buyer needs to pay to the seller based on the conditions of a prior bill.

Discount Period

The discount period is the timeframe during which a payment can be made with a discount for early settlement in terms of credit sales.