An accounting system in which every business transaction is recorded in an asset account, a liability account, or an owner's equity account in order for the system to balance is known as which of the following?
A) double-entry accounting
B) open-book accounting
C) managerial accounting
D) cost accounting

Question

Quizplus · Accepted Answer

Double-entry accounting is a system where every transaction affects at least two accounts, ensuring that the accounting equation (Assets = Liabilities + Owner's Equity) remains balanced. This method provides a complete record of financial transactions.

An Accounting System in Which Every Business Transaction Is Recorded