Double-Entry Accounting Is an Accounting System

question 34

Multiple Choice

Double-entry accounting is an accounting system:

• A) That records each transaction twice.
• B) That records the effects of transactions and other events in at least two accounts with equal debits and credits.
• C) In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
• D) That may only be used if T-accounts are used.
• E) That insures that errors never occur.

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Definitions:

Codeine

An opioid pain medication used to treat mild to moderate pain, often prescribed in cough syrups or as part of combination medications.

Mescaline

A psychedelic compound derived from certain cacti, known for its hallucinogenic effects.

Nicotine

Nicotine is a stimulant drug found in tobacco products, known for its addictive properties and effects on the central nervous system.

Stimulant

A substance that raises levels of physiological or nervous activity in the body.