If a transaction is properly analyzed and recorded,
A)one asset account will be debited and one liability account will be credited.
B)the total dollar amount debited will equal the total dollar amount credited.
C)only two accounts will be used to record the transaction.
D)one account balance will increase and another will decrease.

Question

Quizplus · Accepted Answer

The fundamental accounting equation requires that total assets equal total liabilities and equity. Therefore, every transaction must be recorded so that the total dollar amount debited (represented by assets and expenses) equals the total dollar amount credited (represented by liabilities, equity, and revenues). This is known as double-entry accounting and ensures that the accounting equation remains in balance.

If a Transaction Is Properly Analyzed and Recorded