The Following Statements Pertain to Recording Transactions

question 31

Multiple Choice

The following statements pertain to recording transactions.Which of them are true? I.Total debits should equal total credits.
II) It is possible to have multiple debits or credits in one journal entry.
III) Assets are always listed first in journal entries.
IV) Some journal entries will have debits only.

• A)I only.
• B)I and II.
• C)I,II,and IV.
• D)II,III,and IV.

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Definitions:

Compounded Quarterly

Compounded quarterly refers to the method of calculating interest where the interest earned or paid is compounded four times a year.

Lump Sum Payment

A large, one-time payment made for a particular item or service, rather than breaking the payment into smaller installments.

Financial Obligation

A financial commitment, duty, or liability that an individual or entity is legally bound to fulfill, such as loans or debts.

Compounded Semi-annually

The process where interest is calculated twice a year and added to the principal, allowing future interest calculations to be based on the new principal amount.