The Government's Use of Extraordinary Power

question 7

Multiple Choice

The government's use of extraordinary power:

• A)is only limited by necessity.
• B)is unlimited and can be used for any length of time.
• C)can be used only when it is absolutely necessary and must be given up when the emergency is over.
• D)refers only to the use of the military.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, considering the account type (asset, liability, etc.).

Double-Entry Accounting

A bookkeeping system that records each transaction in two accounts, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.

Transaction Recorded Twice

This refers to a bookkeeping error where a financial transaction is mistakenly entered into an accounting system more than once, potentially distorting financial statements.

Liabilities

Debts or financial responsibilities that a company has towards others, requiring settlement via the transfer of economic resources over a period.