The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:
A)single-entry accounting.
B)double-entry accounting.
C)compound-entry accounting.
D)multiple-entry accounting.

Question

Quizplus · Accepted Answer

The dual effect on the accounting equation, with each transaction affecting two or more accounts, forms the basis of double-entry accounting, where both a debit and credit entry are made for every transaction. This system provides a more complete and accurate recording of financial transactions than single-entry accounting. Compound-entry accounting and multiple-entry accounting are not recognized accounting terms.

The Fact That Each Transaction Has a Dual Effect on the Accounting