A Compound Journal Entry Affects No More Than Two Accounts

question 168

True/False

A compound journal entry affects no more than two accounts.

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Definitions:

Equilibrium Price

The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal.

Government Tax

Required payments to the government, deducted from workers' salaries and company earnings, or applied to the prices of specific items, services, and activities.

Tax Revenue

Consists of the income that a government gains from taxation, which is used to fund public services and obligations.

Welfare

Government programs that supplement the incomes of the needy.