There Are Two Basic Categories of Information Available to Small

question 64

Multiple Choice

There are two basic categories of information available to small business owners:

• A)legal and commercial.
• B)free and paid.
• C)consumer-related and industry-related.
• D)online and in-print.

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Definitions:

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but are not yet recorded.

Internal Transactions

Transactions that occur within a company, affecting its internal accounts without involving an external party.

External Transactions

Financial transactions that involve parties outside of the company, impacting the company's financial statements.

Accrual Basis Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is received or paid.