A bookkeeper using a double entry system can record an increase in cash without indicating whether any other accounts were affected by this increase in cash.

Question

Quizplus · Accepted Answer

In a double entry system, every transaction must have an equal and opposite effect on at least two accounts. Therefore, when an increase in cash is recorded, it must be accompanied by a decrease in another account such as accounts payable, accounts receivable, or revenue. Failure to record the corresponding decrease in another account would result in an imbalance in the books.

A Bookkeeper Using a Double Entry System Can Record an Increase