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.

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Definitions:

Common Resource

A resource like air or water that is not owned by anyone, but can be used by everyone, often leading to overuse and depletion.

Low Productivity

A situation where there is an inefficient level of output produced relative to the input used, often leading to decreased economic performance.

Common Resource

A natural or man-made resource that is available to all but can be depleted if overused, such as fisheries, clean air, or public parks.

Overuse

The excessive use of a resource, leading to its depletion or degradation.