Which of the following relationships best expresses the double-entry nature of an accounting system?
A)assets = liabilities
B)assets = debits
C)liabilities = credits
D)debits = credits

Question

Quizplus · Accepted Answer

In a double-entry system, every transaction involves two or more accounts and the total debits must equal total credits. This is expressed through the relationship of debits = credits. Therefore, option D is correct. Options A and B are incomplete and do not reflect the double-entry nature of the system, while option C only shows the relationship between liabilities and credits, ignoring the existence of debits in the system.

Which of the Following Relationships Best Expresses the Double-Entry Nature