Which of the Following Accounting Systems Is Based on the Principle

question 6

Multiple Choice

Which of the following accounting systems is based on the principle that assets equal liabilities plus owner's equity.This system requires time and skill and provides a comprehensive financial picture with built-in accuracy controls?

• A)Single entry
• B)Double entry  
• C)Pegboard
• D)Computerized

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Definitions:

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities within their jurisdiction.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the basic profitability of a company's core business activities.

Inventory

The total amount of goods and materials held by a company, intended for sale or used in the production of goods to be sold.

Rising Prices

A period or condition where the general level of prices for goods and services is increasing, often measured by indices such as the Consumer Price Index (CPI).