Which of the Following Is a Criticism of the Double-Entry

question 7

Multiple Choice

Which of the following is a criticism of the double-entry financial accounting system?

• A) It has a general inability to take the social and environmental consequences of a reporting entity's existence into account.
• B) It uses a system of debts and credits to account for increases and decreases, instead of positive and negative numbers.
• C) Its initial development in a generally unregulated environment has resulted in a lack of uniformity and comparability.
• D) All of the given options are correct.

---

Definitions:

Debtor's Income

The amount of money generated by an individual or entity that owes money to another party.

Liquidation

The process of converting company assets into cash to pay off creditors or redistribute among shareholders during the closing or bankruptcy of a business.

Objectives

Specific, measurable goals set by a business or individual to guide actions and measure success.

Reorganization

The process of restructuring a company's business affairs, structure, or debts to increase efficiency or to adapt to changes.