All of the Following Statements Are True of Double-Entry Accounting

question 42

Multiple Choice

All of the following statements are true of double-entry accounting except:

• A)There is a need for both debit and credit entries for each and every transaction.
• B)Double-entry accounting can only be used with computer-based accounting systems.
• C)The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
• D)Double-entry accounting allows us to measure net income at the same time we record the effect of transactions on the balance sheet accounts.

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Definitions:

Management

The process of dealing with or controlling things or people, particularly in the context of running a business, organization, or project.

High-Growth Stage

A phase in a company's life cycle characterized by rapid expansion and scaling of operations.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Perilous Stage

A critical or dangerous phase in a process, project, or journey where the risk of failure or adverse outcomes is significantly high.