Double-Entry Accounting Is Best Characterized As

question 144

Multiple Choice

Double-entry accounting is best characterized as:

• A) The number of debit entries posted to the ledger equals the number of credit entries.
• B) The number of ledger accounts with debit balances is equal to the number with credit balances.
• C) Every transaction affects both an asset account and either a liability account or a stockholders' equity account.
• D) The total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

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Definitions:

Law of Averages

A layman's term often misused to suggest that a future event is likely to occur to balance out a statistical deviation, though not a formal statistical principle.

Independent Events

Two or more events whose outcomes do not affect each other's probabilities of occurring.

Positive Difference

The result of subtracting a smaller number from a larger number, ensuring a non-negative result.

Fair 6-Sided Dice

A classic dice with six faces, each showing a number from one to six, where each number has an equal likelihood of appearing on a roll.