In the Double-Entry Accounting System, Each Transaction

question 46

Multiple Choice

In the double-entry accounting system, each transaction:

• A)involves exactly two accounts.
• B)involves at least two accounts.
• C)involves an asset account and a liability account.
• D)involves a liability account and an equity account.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen over others.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Price Elasticity

The determination of how price alterations influence the market demand for a commodity.

Marginal Value

The additional satisfaction or utility received by consuming one more unit of a good or service.