The double-entry system requires that each transaction must be recorded
A) in at least two different accounts.
B) in two sets of books.
C) in a journal and in a ledger.
D) first as a revenue and then as an expense.

Question

Quizplus · Accepted Answer

The double-entry system requires that each transaction is recorded in at least two different accounts, typically a debit in one account and a corresponding credit in another account, in order to maintain the balance between assets, liabilities, and equity. Recording transactions in two sets of books or as revenue and expense is not part of the double-entry system. Recording transactions in a journal and ledger is a common practice within the double-entry system.

The Double-Entry System Requires That Each Transaction Must Be Recorded