Double-Entry Accounting Requires Transactions to Affect Two or More Accounts

question 77

True/False

Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits to be greater than the credits.

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Definitions:

Gains Incurred

Increases in equity (excluding contributions from owners) that stem from peripheral or incidental transactions of a company.

Accumulated Depreciation

The cumulative sum of depreciation costs allocated to an asset from the time it was first used.

Disposal

The act of getting rid of an asset through sale, exchange, retirement, or destruction, typically reflected in financial statements.

Plant Asset

Long-lived, tangible assets used in the operations of a business, typically including buildings, machinery, and equipment.