In recording an accounting transaction in a double-entry system
A) the number of debit accounts must equal the number of credit accounts.
B) there must always be entries made on both sides of the accounting equation.
C) the amount of the debits must equal the amount of the credits.
D) there must only be two accounts affected by any transaction.

Question

Quizplus · Accepted Answer

The fundamental principle of double-entry accounting is that for every debit entry recorded, there must be an equal credit entry recorded to keep the accounting equation in balance. Therefore, the amount of the debits must always equal the amount of the credits. Option A is incorrect because there may be more than one debit or credit account involved in a transaction. Option B is incorrect because there may be situations where only one side of the accounting equation is affected. Option D is incorrect because more than two accounts can be involved in a transaction.

In Recording an Accounting Transaction in a Double-Entry System