Which of the Following Statements Is TRUE of the Double-Entry

question 57

Multiple Choice

Which of the following statements is TRUE of the double-entry bookkeeping system?

• A) Depreciation is not considered when recording transactions under this system.
• B) Only credit transactions are recorded under this system.
• C) The system records only those transactions that bring in revenue.
• D) The accounting equation is always kept in balance under the system.
• E) A business does not run on a cash basis under the double-entry bookkeeping system.

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Definitions:

Positive Mood

A state of mind characterized by optimism and a general sense of well-being.

Neutral Information

Data or facts presented without bias, allowing recipients to form their own opinions or conclusions.

Decision Making

The mental act of choosing one option out of several possible choices.

Escalation Of Commitment

A decision-making error in which individuals or groups continue to invest in a failing course of action based on the time, money, or resources they have already committed.