An Entity's Equity Consists of Two Accounts,Amy Jones,Capital,and Mindy Lenz,Capital

question 93

Multiple Choice

An entity's equity consists of two accounts,Amy Jones,Capital,and Mindy Lenz,Capital.This indicates the entity is a:

• A)proprietorship.
• B)corporation.
• C)not-for-profit.
• D)partnership.

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Definitions:

Double-entry System

A system that records in appropriate accounts the dual effect of each transaction.

Double Line

This term is often used in accounting to denote totals or sums in financial statements, represented by drawing a double line.

Normal Balance

An account balance on the side where an increase in the account is recorded.