For the Accounting Equation to Balance Each Transaction Must

question 1

Multiple Choice

For the accounting equation to balance each transaction must:

• A)always affect two accounts.
• B)affect the same number of asset and liability accounts.
• C)affect two or more accounts.
• D)affect two or less accounts

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Perfectly Elastic

Describes a situation in which the demand or supply for a product responds immediately and proportionately to changes in price, leading to an infinite elasticity.

Present Value

The present value of a future amount of money or series of cash inflows, calculated using a predetermined interest rate.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a specific time frame, often noted on an annual basis.