Which Pair of Accounts Has the Same Set of Rules

question 100

Multiple Choice

Which pair of accounts has the same set of rules for debit and credit entries?

• A) Service revenue and Rent expense
• B) Dividends and Retained earnings
• C) Equipment and Salaries expense
• D) Accounts receivable and Accounts payable

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Definitions:

Periodic Inventory System

An accounting method that tracks inventory purchases and sales periodically, typically at the end of an accounting period.

Inventory Purchased On Account

Transactions where inventory is acquired by a business without immediate cash payment, indicating a credit purchase recorded in accounts payable.

Proper Journal Entry

A record used in accounting to track the transfer of assets, liabilities, or equity from one account to another, ensuring each transaction is accurately captured.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, such as monthly or annually, rather than continuously.