Which of the Following Statements About Double-Entry Bookkeeping Is True

question 12

Multiple Choice

Which of the following statements about double-entry bookkeeping is true?

• A) The double-entry principle is referred to as accrual accounting.
• B) For each transaction or economic event the total amount debited must equal the total amount credited.
• C) If one account is increased, then another account must be decreased.
• D) The total number of accounts debited must equal the total number of accounts credited.

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Definitions:

Commits a Tort

Engaging in an act that causes harm or injury to another person, leading to legal liability under civil law.

Term Partnership

A specific partnership established for a predetermined duration or until a project is completed.

Wrongfully Dissociates

An unjust separation or withdrawal from a partnership or association that breaches an agreement or expectation.

Buyout Price

The amount of money agreed upon for the purchase of a company's stock or assets by another entity or by its own shareholders.