A Journal Entry Is a Written Expression of the Effects

question 20

True/False

A journal entry is a written expression of the effects of a transaction on accounts and has equal debits and credits.

---

Definitions:

Gross Investment

Gross investment refers to the total amount of money spent on acquiring new capital assets or improving existing ones before accounting for depreciation.

Expected Rate Of Profit

The anticipated return on investment expressed as a percentage; it motivates entrepreneurs and investors to undertake business ventures.

Expected Profits

The forecasted profitability of a venture or investment, taking into account anticipated costs and revenues.

Money Invested

The capital put into an investment vehicle with the expectation of generating a profit or income.