Under the Double-Entry System Revenues Must Always Equal Expenses

question 59

True/False

Under the double-entry system revenues must always equal expenses.

---

Definitions:

Beginning Retained Earnings

The balance of retained earnings in a company's financial statements at the start of a new accounting period.

Percentage Change

A mathematical calculation that describes the degree of change over time, usually expressed as a percentage to indicate an increase or decrease.

Negative Balance

A situation where the account balance is below zero, indicating that money is owed.

Percentage Increase

The rate at which a specific quantity grows over a particular period of time, expressed as a fraction of the initial value.