Asked by Ashley Saylors on May 05, 2024
Verified
Accurate calculation of profit and loss in complex businesses
A) advantage of double-entry system over the single-entry system
B) characteristic of the single-entry system
Double-entry Bookkeeping
An accounting method where each entry to an account requires a corresponding and opposite entry to a different account.
Profit and Loss
A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.
Complex Businesses
Enterprises that operate in multiple industries or markets, have various products or services, and face multifaceted management challenges.
- Recognize the benefits and effectiveness of the double-entry over the single-entry system in accounting practices.
Verified Answer
Learning Objectives
- Recognize the benefits and effectiveness of the double-entry over the single-entry system in accounting practices.
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