What Is the Best Definition of Double Entry Accounting

question 11

Multiple Choice

What is the best definition of double entry accounting?

• A)Double entry accounting is a newer method of recording exchanges in a transaction.It is invented to be used in a computerized accounting system.
• B)Double entry accounting is used to record what is exchanged in a transaction.Each journal entry should balance,however,in rare circumstances some transactions will not balance.
• C)Double entry accounting is used in conjunction with a journal to record what is exchanged in a transaction.Each journal entry must balance.
• D)Double entry accounting is used in conjunction with the financial statements to provide a record of what is exchanged in a transaction.

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Definitions:

Inelastic Supply

Describes a situation where the quantity supplied of a good changes by a smaller percentage than the percentage change in its price.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for public purposes.

Cigarette Manufacturers

Companies engaged in the production and sale of cigarettes.

Burden

Often used in the context of taxation or regulations, indicating the weight of responsibility or negative impacts placed on individuals or organizations.