The Total Amount of Debits Must Equal the Total Amount

question 54

Multiple Choice

The total amount of debits must equal the total amount of credits. This is a rule of:

• A)T-accounts.
• B)the chart of accounts.
• C)double-entry accounting.
• D)normal balances.

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Definitions:

Service Period

The period of time over which employee services are rendered in exchange for an award, common in the context of stock compensation plans.

Stock Option Plan

A compensation scheme in which employees are given the option to purchase company stock at a discounted price, often used to align employees' interests with those of the shareholders.

Stock Options

Financial derivatives that confer the right, but not the obligation, to buy or sell shares of stock at a specified price within a certain time frame.

Common Stock

Holding shares in a company, granting the holder voting privileges on company issues and entitlement to dividends.