In Addition to Requiring That the Accounting Equation Remain in Balance,the

question 27

Multiple Choice

In addition to requiring that the accounting equation remain in balance,the double-entry system also requires that:

• A)the number of asset accounts must equal the number of liability and stockholder's equity accounts.
• B)for any transaction,only two accounts are affected.
• C)for any transaction,both sides of the accounting equation are affected.
• D)the total dollar amount of debits must equal the total dollar amount of credits.

---

Definitions:

Phillips Curve

An economic theory suggesting an inverse relationship between the rate of inflation and the rate of unemployment in an economy.

Unemployment Rate

The quantum of the working population that is job-free and in active search of employment.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a certain period of time.

Rational Expectations School

A theory in economics that suggests individuals make decisions based on their rational outlook, available information, and past experiences.