The double-entry system of accounting means that:
A) Two pieces of information must be recorded for each transaction--the date and the dollar amount.
B) Assets will be increased twice as often as liabilities.
C) At least two elements of the accounting equation must be affected for each transaction.
D) Each transaction will be recorded two times, once in the general ledger and once in the balance sheet.
E) None of the above

Question

Quizplus · Accepted Answer

The double-entry system of accounting requires that for every transaction, at least two accounts are involved, with at least one account being debited and another credited. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

The Double-Entry System of Accounting Means That