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:

Poverty Line

A specified threshold of income deemed necessary to meet basic living costs, below which individuals or families are considered to be living in poverty.

Income Inequality

The unequal distribution of annual or lifetime income among individuals or households within a society.

Pre-Tax-And Transfer Income

The total income of individuals or households before taxes are deducted and before any government transfers, such as subsidies or welfare, are added.

Trend

A general direction in which something is developing or changing over time.