In Recording an Accounting Transaction in a Double-Entry System

question 73

Multiple Choice

In recording an accounting transaction in a double-entry system

• A)the number of debit accounts must equal the number of credit accounts.
• B)there must always be entries made on both sides of the accounting equation.
• C)the amount of the debits must equal the amount of the credits.
• D)there must only be two accounts affected by any transaction.

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Definitions:

Invoices

Official documents issued by a seller to a buyer, detailing the products or services sold, their prices, and the total amount owed.

Trade Discount

A reduction in the list price granted by wholesalers or manufacturers to retailers or other buyers in the same trade to encourage bulk purchasing.

Suggested List Price

Refers to the price that manufacturers propose retailers sell a product for, serving as a guideline.

Cashmere Sweater

A cashmere sweater is a luxurious garment made from the soft undercoat of the cashmere goat, known for its warmth, lightness, and softness.