The double-entry accounting system means
A)Each transaction is recorded with two journal entries.
B)Each item is recorded in a journal entry, then in a general ledger account.
C)The dual effect of each transaction is recorded with a debit and a credit.
D)More than one of the above.

Question

Quizplus · Accepted Answer

The double-entry accounting system records the dual effect of each transaction with a debit and a credit. Each transaction is recorded in at least two accounts, one account is debited and the other account is credited. This ensures that the accounting equation (Assets = Liabilities + Owner's Equity) always remains in balance.

The Double-Entry Accounting System Means