Double-entry accounting is best characterized as
A)the number of debit entries posted to the ledger equals the number of credit entries.
B)the number of ledger accounts with debit balances is equal to the number with credit balances.
C)every transaction affects both an asset account and either a liability account or a stockholders' equity account.
D)the total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

Question

Quizplus · Accepted Answer

Double-entry accounting requires every transaction to have at least two entries - one debit and one credit - of equal value. This means that the total dollar amount of debit entries must always equal the total dollar amount of credit entries, making option D the correct answer. Option A is not accurate because some transactions may require multiple debit or credit entries, making the number of entries unequal. Option B is incorrect because some accounts may have zero balances or may be contra-accounts - accounts with balances opposite to their normal balance - which can throw off the balance between debit and credit accounts. Option C is also wrong because not every transaction affects both an asset and a liability/equity account.

Double-Entry Accounting Is Best Characterized as