The double-entry system of recording means that debits must equal credits.

Name: The double-entry system of recording means that debits must equal credits.
Brand: Quizplus
Rating: 4.7 (58 reviews)

Question

Quizplus · Accepted Answer

The fundamental principle of double-entry bookkeeping is that every financial transaction has equal and opposite effects in at least two different accounts. This means that debits (left side of an account) must always equal credits (right side of an account) for the accounting equation to remain in balance. Therefore, the statement is true.

The Double-Entry System of Recording Means That Debits Must Equal