Record Keeping for a Very Small Business Can Be Accomplished

question 8

Multiple Choice

Record keeping for a very small business can be accomplished by a journal and files for storing ________.

• A) records of transactions
• B) details of seed capital
• C) details of start-up expenses
• D) details of marginal costs

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Definitions:

Permanent/Temporary

Refers to types of accounts in accounting, where permanent accounts show cumulative amounts that carry over to future periods, and temporary accounts are closed at the end of each period.

Normal Balance

The side (debit or credit) of an account on which increases to the account are recorded under double-entry accounting.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.

Permanent/Temporary

distinguishes between accounts or actions that exist indefinitely (permanent) or for a specific duration (temporary).