The Double-Entry Accounting System Means

question 41

Multiple Choice

The double-entry accounting system means

• A) Each transaction is recorded with two journal entries.
• B) Each item is recorded in a journal entry, then in a general ledger account.
• C) The dual effect of each transaction is recorded with a debit and a credit.
• D) None of these answer choices are correct.

---

Definitions:

Deferred Tax

A tax liability or asset that arises due to temporary differences between the book value and tax value of assets and liabilities.

Deferred Tax Asset

A tax benefit that arises from temporary differences between the book and the taxable income, often due to allowances and deductions recognized at different times.

Consulting Fees

Charges imposed by consultants for their professional advice and services rendered to businesses.

Tax Rate

The percentage at which an individual or corporation is taxed on their income.