40.Peter, an accountant, enters every transaction in the journal to reflect its impact on assets and its impact on liabilities and owners' equity. He is using
A) a double-entry accounting system.
B) a balance sheet.
C) a financial ratio.
D) breakeven analysis.
E) a financial statement.

Question

Quizplus · Accepted Answer

Peter is using a double-entry accounting system, which requires entries to reflect both the debit and credit impacts on assets, liabilities, and equity. This system ensures accuracy and completeness in financial recording.

40Peter, an Accountant, Enters Every Transaction in the Journal to Reflect