An Accounting Identity

question 98

Multiple Choice

An accounting identity

• A) ensures that all balances will be in equilibrium.
• B) is useless in analyzing balance of payments since one cannot tell from the identity whether an equilibrium exists or not.
• C) ensures a balance but does not ensure an equilibrium.
• D) applies only to plans of economic agents and not to their actual actions.

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Definitions:

Bilateral Descent

A system of family lineage in which kinship and inheritance are traced through both parents' lines.

Double Descent

A system of kinship where individuals trace their ancestry through both their mother's and father's lines equally.

Lineage

A unilineal kin group descended from a common ancestor or founder who lived four to six generations ago and in which relationships among members can be exactly stated in genealogical terms.

Unilineal Kin Group

A social group where membership is inherited through either the male (patrilineal) or female (matrilineal) line exclusively.