Double-entry bookkeeping for the balance of payments requires that:
A)the current account always equal the balance of payments.
B)every transaction be recorded as a credit and a debit at the same time.
C)total credits always exceed total debits.
D)every transaction be recorded as either a credit or a debit.
E)total debits always exceed total credits.

Question

Quizplus · Accepted Answer

Double-entry bookkeeping requires every transaction to be recorded as both a credit and a debit at the same time. This ensures that the total credits equal the total debits and maintains the balance of payments. Therefore, option B is the best choice. Options A, C, D, and E are incorrect as they do not accurately depict the requirements of double-entry bookkeeping for the balance of payments.

Double-Entry Bookkeeping for the Balance of Payments Requires That