The Double-Entry System Is a Logical Method for Recording Transactions

question 114

True/False

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

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Definitions:

U.S. GAAP

The United States Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures used in the U.S.

Written Down

A term referring to an asset that has been depreciated or devalued on the financial statements.

Carrying Value

The amount an asset is valued at on a balance sheet, subtracting depreciation and amortization.

Value Recovers

The process by which the market value of an asset increases after a period of decline.