The Essential Point of a Double-Entry System of Accounting Is

question 88

Multiple Choice

The essential point of a double-entry system of accounting is that every transaction:

• A)Affects accounts on both sides of the balance sheet.
• B)Is recorded in both the journal and the ledger.
• C)Increases one ledger account and decreases another.
• D)Affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits.

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Definitions:

Punishment

A consequence imposed on an individual for a perceived or actual wrongdoing, intended to serve as a deterrent to unacceptable behavior.

Deterrence

A strategy intended to discourage someone from taking an action due to the belief that the negative consequences will outweigh the benefits.

Criminal Acts

Behaviors or actions that are in violation of the laws set forth by a governing authority, subject to legal penalties.

Imprisoned

The state of being confined in prison as a form of punishment or while awaiting trial, resulting in significant restrictions on freedom.