The Essential Point of a Double-Entry System of Accounting Is

question 88

Multiple Choice

The essential point of a double-entry system of accounting is that every transaction:

• A)Affects accounts on both sides of the balance sheet.
• B)Is recorded in both the journal and the ledger.
• C)Increases one ledger account and decreases another.
• D)Affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits.

---

Definitions:

Contract Law

The collection of legal principles that oversees the formation, implementation, and understanding of contracts between individuals.

Competition

The rivalry between companies or individuals for market share, customers, sales, or recognition, driving innovation, quality, and value in services or products.

Infants

Legally refers to individuals who are under the age of majority, typically below 18 years, and are often considered incapable of entering into certain contracts or agreements.

Contract Law

The body of law that governs the creation and enforcement of agreements between parties.