What Are the Three Levels of Profit

question 39

Essay

What are the three levels of profit?

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Definitions:

Equality

The balance between the total debits and total credits in an account, ensuring that all financial transactions are properly recorded.

Debits And Credits

The two fundamental aspects of every financial transaction in double-entry bookkeeping, where debits must equal credits.

Trial Balance

A trial balance is a bookkeeping report showing the balances of all ledgers accounts to ensure that debits equal credits.

Double-Entry System

An accounting technique that records each transaction as both a debit and a credit in different accounts, ensuring the accounting equation remains balanced.