An Exchange of Value Between Two Entities That Yields a Change

question 155

Multiple Choice

An exchange of value between two entities that yields a change in the accounting equation is called:

• A)The accounting equation.
• B)Recordkeeping or bookkeeping.
• C)An external transaction.
• D)An asset.
• E)Net Income.

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Definitions:

Constitution

A set of fundamental principles or established precedents according to which a state or other organization is governed.

Federalism

A system of government in which power is divided between a central government and smaller political units, such as states.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was replaced by the U.S. Constitution in 1789 due to its inability to provide a strong central government.

Centralization

Centralization refers to the process of consolidating control and decision-making authority at the top levels of an organization or government.