The Double-Entry Accounting System Means

question 82

Multiple Choice

The double-entry accounting system means

• A) each transaction is recorded with two journal entries.
• B) each item is recorded in a journal entry, then in a general ledger account.
• C) the dual effect of each transaction is recorded with debits and credits of equal amount.
• D) None of these answer choices is correct.

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Definitions:

Long-term Debt

Refers to loans or borrowed capital that is repaid over a time frame longer than one year.

Prototype Financing

The process of securing funds to design, build, and test a prototype before mass production, critical in the development of new products or technologies.

Capital Provided

This term denotes funds given to a company or project by investors or lenders for the purpose of financing operations, growth, or investments.

First-stage

An initial phase or period in a multi-stage process, often indicating the beginning steps in a project or strategy.