Which of the following statements is TRUE of the double-entry bookkeeping system?
A) Depreciation is not considered when recording transactions under this system.
B) Only credit transactions are recorded under this system.
C) The system records only those transactions that bring in revenue.
D) The accounting equation is always kept in balance under the system.
E) A business does not run on a cash basis under the double-entry bookkeeping system.

Question

Quizplus · Accepted Answer

A)Double-entry bookkeeping is a method of recording financial transactions that requires a debit entry and credit entry for each transaction to ensure that the accounting equation is always kept in balance.
B)Double-entry bookkeeping is a method of recording financial transactions that requires a debit entry and credit entry for each transaction to ensure that the accounting equation is always kept in balance.
C)Double-entry bookkeeping is a method of recording financial transactions that requires a debit entry and credit entry for each transaction to ensure that the accounting equation is always kept in balance.
D)Double-entry bookkeeping is a method of recording financial transactions that requires a debit entry and credit entry for each transaction to ensure that the accounting equation is always kept in balance.
E)Double-entry bookkeeping is a method of recording financial transactions that requires a debit entry and credit entry for each transaction to ensure that the accounting equation is always kept in balance.

Which of the Following Statements Is TRUE of the Double-Entry