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That bank loan is entered as a liability of 10,000, keeping the equation balanced. This method is called:
ADouble-column bookkeeping
BDouble-entry bookkeeping
CDouble-charge bookkeeping
DDouble-margin bookkeeping
Answer & Solution
Correct answer: B. Double-entry bookkeeping
1. Every transaction touches two records.
2. One entry offsets the other.
3. This is double-entry bookkeeping.
_Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._
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