When Two Accounts Are Required in One Journal Entry the Entry

question 5

Multiple Choice

When two accounts are required in one journal entry the entry is referred to as a

• A) balanced entry.
• B) simple entry.
• C) posting.
• D) nominal entry.

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Definitions:

Historic Rate

The exchange rate at which a transaction was executed in the past, used for recording foreign currency transactions in financial statements.

Non-Free-Standing Subsidiaries

Entities that are significantly controlled or wholly owned by another firm but lack the independent structure or operations typically associated with subsidiary companies.

Held-to-Maturity Debt Securities

Financial instruments such as bonds that a company intends and is able to hold until they mature, rather than trading them.

Amortized Cost Basis

An accounting method that gradually reduces the cost value of a tangible or intangible asset through periodic amortization charges.