For the Basic Accounting Equation to Stay in Balance Each

question 55

Multiple Choice

For the basic accounting equation to stay in balance each transaction recorded must

• A) affect two or less accounts.
• B) affect two or more accounts.
• C) always affect exactly two accounts.
• D) affect the same number of asset and liability accounts.

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Definitions:

Price Floor

Price floor is a government or regulatory imposed minimum price set above the equilibrium price, preventing the market price from falling below a certain level.

Surplus Of Corn

A surplus of corn signifies a situation in which the supply of corn exceeds the demand, potentially leading to lower market prices and stockpiling.

Black Market

An illegal trade of goods or services not sanctioned by official regulations or subjected to governmental taxes.

Illegal Exchanges

Transactions that are prohibited by law, involving goods or services that are not allowed to be traded.