The double-entry system requires that each transaction must be recorded
A) in at least two different accounts.
B) twice.
C) in a journal and in a ledger.
D) as an asset and as a liability.

Question

Quizplus · Accepted Answer

The double-entry system of accounting is based on the principle that for every financial transaction, there are two effects – one is a debit and the other is a credit, and these effects are recorded in at least two different accounts. This ensures the accounting equation (Assets = Liabilities + Equity) remains balanced.

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