Double-entry accounting is characterized by which of the following?
A)Every transaction affects both an asset account and either a liability account or an owners' equity account.
B)The number of general ledger accounts with debit balances is equal to the number with credit balances.
C)The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
D)The number of debit entries posted to the general ledger equals the number of credit entries.

Question

Quizplus · Accepted Answer

Double-entry accounting requires that every transaction be recorded with at least one debit and one credit entry, and the total dollar amount of debit entries must equal the total dollar amount of credit entries. Therefore, choice C is the correct answer. Choices A and B are partially correct but do not encapsulate the entire concept of double-entry accounting. Choice D is incorrect as double-entry accounting does not require an equal number of debit and credit entries, only that the dollar amounts of each match.

Double-Entry Accounting Is Characterized by Which of the Following