In Accounting, Every Transaction Must Be Recorded as Two Entries

question 104

Multiple Choice

In accounting, every transaction must be recorded as two entries. This system is known as which of the following?

• A) dual-notation bookkeeping
• B) double-entry bookkeeping
• C) double-decker bookkeeping
• D) accounting-cycle bookkeeping

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Definitions:

Cost Of Goods Sold

Direct spending on materials and labor required to produce the merchandise a company sells.

Operating Expenses

The costs associated with the day-to-day activities of a business, excluding costs directly tied to the production of goods or services, such as rent, utilities, and salaries.

Merchandising Company

A business that purchases finished goods for resale in order to earn a profit, without transforming these goods.

Wholesale Parts Company

A business entity that specializes in purchasing and selling automotive, machinery, or electronic parts in large quantities at lower prices, primarily to retailers or repair shops rather than end consumers.