The Fact That Each Transaction Has a Dual Effect on the Accounting

question 28

Multiple Choice

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called

• A) single-entry accounting.
• B) compound-entry accounting.
• C) multiple-entry accounting.
• D) double-entry accounting.

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Definitions:

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular project or investment.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated as the return (profit) of an investment divided by the cost of the investment.

Division

A section or branch of a company that operates semi-autonomously, focusing on a particular product line, market segment, or geographical area.

Managerial Performance

Evaluation of the effectiveness with which managers achieve organizational goals and utilize resources efficiently and effectively.