When recording transactions in T-account format, we must add an additional step to the transaction analysis process. Which of the following is the additional step?
A) Determine what accounts and elements in the equation are affected by the transaction.
B) Determine if the affected accounts are increased or decreased by the transaction.
C) We must have equal debits and credits once the entry is recorded in the accounts.
D) The accounting equation must remain in balance after each transaction.

Question

Quizplus · Accepted Answer

The additional step specific to recording transactions in T-account format is ensuring that there are equal debits and credits once the entry is recorded, which is a fundamental principle of double-entry accounting.

When Recording Transactions in T-Account Format, We Must Add an Additional