In Recording an Accounting Transaction in a Double-Entry System

question 184

Multiple Choice

In recording an accounting transaction in a double-entry system

• A) the number of debit accounts must equal the number of credit accounts.
• B) there must always be entries made on both sides of the accounting equation.
• C) the amount of the debits must equal the amount of the credits.
• D) there must only be two accounts affected by any transaction.

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Definitions:

Purchasing Power

How much a single unit of money can purchase in terms of goods or services, indicating the currency's value.

CPI

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Period

A length or portion of time.

Buying Power

Buying power refers to the value of currency to purchase goods and services, influenced by factors like inflation and the strength of the currency.