How many of the following statements about the double-entry system are true?
i. The accounting equation should stay in balance
ii. At least one account should be debited and one account credited
iii. Credits should always be entered into the journal before debits

Question

Quizplus · Accepted Answer

i. True, the accounting equation (Assets = Liabilities + Equity) must always stay in balance in the double-entry system. ii. True, in every transaction, at least one account is debited and another is credited to keep the accounting equation in balance. iii. False, there is no rule stating credits must be entered before debits; the order does not affect the accounting equation's balance.

How Many of the Following Statements About the Double-Entry System