An accounting system that involves recording the effects of each transaction as debits and credits is:
A)preparing financial statements.
B)the double-entry system.
C)completing one T account.
D)analyzing a business transaction.

Question

Quizplus · Accepted Answer

The double-entry system is an accounting method that involves recording the effects of each transaction as debits and credits. This system ensures that each transaction is correctly recorded and helps maintain the accuracy of financial statements. Option A refers to the end result of the accounting process, not the method used to achieve it. Option C refers to a single account, not the entire system. Option D refers to understanding the impact of a business transaction, which is a step in the accounting process but not the full system.

An Accounting System That Involves Recording the Effects of Each