The Double-Entry System Requires That Each Transaction Must Be Recorded

question 54

Multiple Choice

The double-entry system requires that each transaction must be recorded

• A) in at least two different accounts.
• B) in two sets of books.
• C) in a journal and in a ledger.
• D) first as a revenue and then as an expense.

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Definitions:

Efficiently

The manner in which resources are utilized in the most optimal way to produce goods or services without waste.

Comparative Advantage

An entity's capability to offer a product or service at a reduced opportunity cost than competitors.

Vintner

is a person engaged in winemaking, especially one who is responsible for the production of wine at a vineyard or winery.

Opportunity Cost

The expense incurred by not selecting the second-best choice during a decision-making process or when evaluating different alternatives.