The Double-Entry System Requires How Many of the Following to Be

question 40

Multiple Choice

The double-entry system requires how many of the following to be true?
i.At least one account should be debited and one account credited
ii.Total debits should equal total credits
iii.The accounting equation should stay in balance

• A)0
• B)1
• C)2
• D)3

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Definitions:

Exempt

To be free from an obligation, duty, or liability to which others may be subject; typically used in contexts like taxes, legal requirements, or regulations.

Redemption

The buying back of one’s property after it has been sold. The right to redeem property sold under an order or decree of court is purely a privilege conferred by, and does not exist independently of, statute.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Bankruptcy Petition

A formal request filed by an individual or entity seeking the protection of bankruptcy laws to resolve insolvency issues.