All of the Following Occur with a Double-Entry Accounting System

question 62

Multiple Choice

All of the following occur with a double-entry accounting system except:

• A) The accounting equation remains in balance.
• B) The sum of all debits is always equal to the sum of all credits in each journal entry.
• C) Each business transaction will have only two entries.
• D) Every transaction affects at least two accounts.

---

Definitions:

Percent Increase

The percentage by which a quantity grows relative to its previous value.

Effective Annualized

A term relating to the computation of annual rates of interest or financial returns that takes compounding into account.

Capital Gain Yield

The price appreciation component of the total return on an investment, calculated as the change in the price of the investment over a period of time.

Total Return

Represents the full return on an investment over a given time period, including capital gains, dividends, and interest.