A double-entry accounting system is an accounting system:
A) That may only be used if T-accounts are used.
B) That insures that errors never occur.
C) In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
D) That records the effects of transactions and other events in at least two accounts with equal debits and credits.
E) That records each transaction twice.

Question

Quizplus · Accepted Answer

A double-entry accounting system requires each transaction to be recorded in at least two accounts with equal debits and credits, ensuring that the system remains balanced. It is not necessary to use T-accounts, and errors can still occur in the system despite its structure. While each transaction is recorded twice in a way, this refers to the dual recording in separate accounts, rather than simply duplicating the same transaction entry. Option C is incorrect because a transaction must have an equal amount of debits and credits, not two debits and no credits.

A Double-Entry Accounting System Is an Accounting System