The System of Accounting Where Each Transaction Affects Two or More

question 8

Multiple Choice

The system of accounting where each transaction affects two or more accounts and the sum of the debit entries equals the sum of the credit entries is called:

• A) single transaction accounting.
• B) two-entry accounting.
• C) double-entry accounting.
• D) debit and credit accounting.

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Definitions:

Cash Movement

The inflow and outflow of cash within a business, highlighting the company's ability to generate cash and manage expenses.

Financial Markets

Platforms or systems that facilitate the trading of financial instruments such as stocks, bonds, currencies, and derivatives, allowing for the allocation of resources over time.

Long-Term Securities

Financial instruments or investments that are meant to be held or mature over a period longer than one year.

Capital Markets

Markets where individuals and institutions trade financial securities, including stocks and bonds, over long periods.