Interlocking Directorates Refers to the Linkage Between Corporations That Results

question 141

True/False

Interlocking directorates refers to the linkage between corporations that results when an individual serves on the board of directors of two companies.

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Definitions:

General Journal Entries

General journal entries are records of financial transactions in the general journal, making note of the debit and credit of each transaction according to accounting principles.

Perpetual Inventory Method

An accounting method that continuously tracks inventory levels and costs, updating the inventory account after each purchase or sale.

General Journal Entries

The initial record where financial transactions are first entered into the accounting system, before summarizing or posting to ledgers.

Perpetual Inventory Method

An inventory system that updates inventory accounts after each purchase or sale on a continuous basis.