When Recording Transactions in T-Account Format,we Must Add an Additionalstep

question 24

Multiple Choice

When recording transactions in T-account format,we must add an additionalstep to the transactional analysis process.Which of the following is the additional step?

• A)Determine what accounts and elements in the equation are affected by the transaction.
• B)Determine if the affected accounts are increased or decreased by the transaction.
• C)We must have equal debits and credits once the entry is recorded in the accounts.
• D)The accounting equation must remain in balance after each transaction.

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Definitions:

Auto Repairers

Businesses or individuals specializing in fixing and maintaining vehicles.

Intangible Outputs

Non-physical results produced by an organization or system, such as customer satisfaction, brand reputation, or intellectual property.

Zero Inventories

A business strategy aimed at minimizing holding inventory to reduce storage costs and waste, often relying on just-in-time production methods.

Labour Costs

Expenses incurred by a company for the salaries, wages, and other benefits provided to its employees.