Regarding the Double-Entry System,which of the Following Statements Is Incorrect

question 46

Multiple Choice

Regarding the double-entry system,which of the following statements is incorrect?

• A) A transaction would be incomplete if only one side were recorded.
• B) Because of technology, the use of the double-entry system of accounting is optional.
• C) The double-entry system is a system of accounting in which every transaction affects at least two accounts.
• D) If office supplies are purchased on account, the account Office Supplies increases and the account Accounts Payable increases.

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Definitions:

Accounting Period

A period of time, such as a month, quarter, or year, over which financial statements are prepared to understand a business's financial position and performance.

Inadequacy

The state of being insufficient or not suitable for a specific purpose or requirements.

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose, affecting depreciation calculations.

Growing Production Demands

Growing Production Demands refer to the increase in quantity or speed of production required to meet market or customer demand.