Double-entry accounting is
A)An accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits.
B)An accounting system that disregards the accounting equation, A = L + E.
C)An accounting system in which errors never occur.
D)An accounting system in which the sum of the debit account balances never equals the sum of the credit account balances.
E)An accounting system in which each transaction affects and is recorded in two or more accounts with unequal debits and equal credits.

Question

Quizplus · Accepted Answer

Double-entry accounting is an accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits. This system is based on the accounting equation, which states that assets equal liabilities plus equity. Each transaction must be recorded in at least two accounts, with one account debited and another account credited for the same amount. This ensures that the accounting equation remains in balance and helps to prevent errors.

Double-Entry Accounting Is