What is double-entry accounting?
A) An accounting system that disregards the accounting equation, A = L + E
B) An accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits
C) An accounting system in which each transaction affects and is recorded in two or more accounts with unequal debits and equal credits
D) An accounting system in which the sum of the debit account balances never equals the sum of the credit account balances
E) An accounting system in which errors never occur

Question

Quizplus · Accepted Answer

Double-entry accounting is an accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits. This system is based on the accounting equation, A = L + E, where every transaction affects both sides of the equation. By recording each transaction in two separate accounts, double-entry accounting enables businesses to maintain accurate records and detect errors more easily.

What Is Double-Entry Accounting