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

question 24

Multiple Choice

The essential point of 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:

Fiduciary Duties

Fiduciary duties refer to the obligations of loyalty and care that certain individuals, such as trustees or corporate officers, owe to those they serve.

Oppressive Conduct

Actions by major stakeholders in a corporation that unfairly prejudice the interests of minority shareholders.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation, detailing key aspects such as name, purpose, and structure.

Bylaws

Written rules and regulations adopted by an organization or community to govern its actions and ensure structured management.