Double-entry bookkeeping is based on a rule known as:
A) accrual accounting.
B) going concern principle.
C) the principle of duality.
D) the business entity principle.

Question

Quizplus · Accepted Answer

Double-entry bookkeeping is based on the principle of duality which states that every transaction has two equal and opposite effects on the accounting equation. This means that every transaction will have both a debit and a credit entry, ensuring that the accounting equation always remains in balance. The other options listed do not accurately describe the principle that underlies double-entry bookkeeping.

Double-Entry Bookkeeping Is Based on a Rule Known As