Accounting Question

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Journal entry: It is also called as book of original entry. It is used to record a financial transaction occurred in a business enterprise. The journal entry is made in a chronological order and for every entry there is a debit and a corresponding credit for an equal amount.

Liabilities: These are the debts of an organization which includes both short term and long-term. The short-term debts are those which are repaid in a short-term say an year or less. However, the long-term debts are those which were cleared after an year.

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