The Double-Entry System Requires That Each Transaction Must Be Recorded

question 18

Multiple Choice

The double-entry system requires that each transaction must be recorded

• A)in at least two different accounts.
• B)in a T account.
• C)first as a revenue and then as an expense.
• D)twice.

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Definitions:

Short Run

A period in economics where at least one input (such as plant size) is fixed, limiting the ability of a firm to adjust to market changes.

Market Price

The current price at which a good or service can be bought or sold in a given market.

Total Revenue

The total income received by a firm from selling its goods or services before any costs or expenses are subtracted.

Profitable Level

The point at which total revenues exceed total costs, resulting in financial gain for a business or individual.