One of the Reasons for Shrinking a Business in a Crisis

question 37

True/False

One of the reasons for shrinking a business in a crisis change situation is to simplify the business to the point where it can be operated effectively with available resources.

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Definitions:

Ledger

A comprehensive collection of a company's accounts where transactions are recorded, typically categorized into assets, liabilities, equity, revenues, and expenses.

Compound Journal Entry

A journal entry that includes multiple debits, credits, or both, affecting more than two accounts.

Accounts

Records of financial transactions pertaining to specific assets, liabilities, equity, revenues, and expenses within an organization.

Compound Entry

A type of journal entry in accounting that involves more than two accounts, with multiple debits, credits, or both.