Every transaction:
A) must increase at least one account and decrease at least one account.
B) must debit at least one account and credit at least one account.
C) is recorded in either the journal or the ledger.
D) affects both an income statement account and a balance sheet account.

Question

Quizplus · Accepted Answer

According to double-entry accounting, every transaction must have at least two accounts involved - one account must be debited and another account must be credited. Therefore, option B is the correct choice. Options A and D are incorrect choices because not every transaction affects both the income statement and balance sheet accounts, and it is not necessary for every transaction to increase/decrease an account. Option C is partially correct because every transaction is recorded either in the journal or the ledger, but this is not the defining characteristic of a transaction.

Every Transaction