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The System of Accounting in Which There Are at Least

question 120

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The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an)


Definitions:

Correcting Entry

A journal entry made to amend a previously recorded incorrect transaction in the financial records.

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services sold on credit.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods or services received but not yet paid for.

Equipment

Tangible personal property that is used in operations, such as machinery, computers, and furniture, which is not intended for sale.

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