In a Ledger, a Separate "Account" Is Maintained for Each

question 91

Multiple Choice

In a ledger, a separate "account" is maintained for each:

• A) Type of asset and liability and for each element of equity.
• B) Business transaction.
• C) Business day.
• D) Journal entry.

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Definitions:

Net Investments

The total amount spent by a company or economy on capital assets, minus depreciation, indicating the addition to the overall productive capacity.

Leverage Ratio

A financial metric used to measure a company's debt levels relative to its equity or assets.

Interest-Burden Ratio

A financial metric that measures the proportion of a company's earnings before taxes that is consumed by interest expenses.

Profit Margin

A financial metric used to evaluate a company's financial health by revealing the percentage of revenue that exceeds the costs of goods sold.