In Recording an Accounting Transaction in a Double-Entry System

question 42

Multiple Choice

In recording an accounting transaction in a double-entry system,

• A)the number of accounts to be debited must equal the number of accounts to be credited.
• B)there must always be entries made on both sides of the accounting equation.
• C)the amount of the debits must equal the amount of the credits.
• D)there must only be two accounts affected by any transaction.

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Definitions:

Individual Decision Making

The process by which individuals make choices or judgments from among different options or possibilities, often influenced by personal preferences, economic factors, or available information.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief, behavior or reasoning.

Market Outcomes

The results of interactions between buyers and sellers in a market, determining price levels and quantities of goods and services exchanged.

Marginal Cost

The additional outlay required for the production of an extra unit of a product or service.