The Duality Concept Requires That Each Transaction Must Be Recorded

question 57

Multiple Choice

The duality concept requires that each transaction must be recorded:

• A)in at least two different accounts.
• B)in a journal and a ledger.
• C)in two sets of books.
• D)first as income than as an expense.

---

Definitions:

Accounts Receivable Turnover

Accounts Receivable Turnover is a financial ratio that measures how many times a company can turn its accounts receivable into cash during a period, indicating the efficiency of collecting debts.

Aging of Accounts Receivable

An accounting process that categorizes outstanding receivables based on the length of time they have been unpaid.

Expense Recognition Principle

An accounting principle that states expenses should be recognized and recorded when they contribute to generating revenue, regardless of when cash is paid.

Allowance for Doubtful Accounts

An accounting entry known as a contra-asset account that predicts the amount of accounts receivable that might be uncollectible.