The double-entry accounting system means
A) each transaction is recorded with two journal entries.
B) each item is recorded in a journal entry, then in a general ledger account.
C) the dual effect of each transaction is recorded with debits and credits of equal amount.
D) None of these answer choices is correct.

Question

Quizplus · Accepted Answer

The double-entry accounting system records the dual effect of each transaction with debits and credits of equal amount. Option A is partially correct, as each transaction is recorded with two journal entries, but fails to mention the importance of debits and credits. Option B is also partially correct, but again does not mention the use of debits and credits. Option D is incorrect as the correct answer is C.

The Double-Entry Accounting System Means