A Double-Entry Accounting System Is an Accounting System

question 170

Multiple Choice

A double-entry accounting system is an accounting system:

• A) That may only be used if T-accounts are used.
• B) That insures that errors never occur.
• C) In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
• D) That records the effects of transactions and other events in at least two accounts with equal debits and credits.
• E) That records each transaction twice.

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Definitions:

Movement Along

A movement along a demand or supply curve represents a change in the quantity demanded or supplied as a result of a change in the good's price, without shifting the curve itself.

Shift Of

An alteration in the position or direction of something, often used in economic contexts to describe changes in supply, demand, or other market variables.

Technological Change

Innovations in technology that improve the efficiency or effectiveness of production, services, and the creation of new products.

Business Expectations

Business Expectations relate to the outlook that firms have regarding future economic conditions, influencing their decisions on investments and expansions.