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.

Understand and apply the concept of fair value adjustments for acquired assets and liabilities.

Analyze the effects of inventory sales transactions between parent and subsidiary on consolidated net income and retained earnings.

Recognize and measure goodwill impairment.

Prepare and interpret consolidated balance sheets and income statements.

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Definitions:

Factorial Designs

Experimental designs used to evaluate the effects of two or more factors by varying them simultaneously and systematically.

Interaction Effects

A statistical concept where the effect of one independent variable on the dependent variable differs across the levels of another independent variable.

Independent Variables

Factors in an experiment that are manipulated to determine if they cause a change in the dependent variable.

Degrees Of Freedom

The sum of independent values or quantities that may be applied to a statistical distribution.