The Simple Rate of Return Method Places Its Focus on Cash

question 20

True/False

The simple rate of return method places its focus on cash flows instead of on accounting net operating income

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Definitions:

General Journal

The general journal is a primary accounting record used to enter all transactions through debits and credits, serving as the initial point of data entry.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period, usually one year.

General Journal

A primary accounting record used to track all financial transactions of a business, entered in chronological order.