A Record of the Increases and Decreases in a Specific

question 146

Multiple Choice

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n) :

• A) Journal.
• B) Posting.
• C) Trial balance.
• D) Account.
• E) Chart of accounts.

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Definitions:

Ultramares Rule

A legal principle that limits the liability of accountants for negligence to parties with whom they are in direct contractual relationship unless fraud is involved.

Duty of Care

A legal obligation requiring individuals and entities to exercise a reasonable standard of care to avoid causing harm to others.

Positive Net Worth

The financial status where total assets exceed total liabilities.

Obvious Theft

A situation where an act of stealing is clear and unmistakable to any observer.