Double-entry accounting is an accounting system:
A)That records each transaction twice
B)That records the effects of transactions and other events in at least two accounts with equal debits and credits
C)In which the impact of each transaction is recorded in two or more accounts but that could include two debits and no credits
D)That may only be used if T-accounts are used
E)That insures that errors never occur

Question

Quizplus · Accepted Answer

Double-entry accounting is a system in which the impact of each transaction and other events are recorded in at least two accounts with equal debits and credits. This system ensures accuracy and provides a reliable method of tracking financial transactions. The other options are incorrect, as double-entry accounting may include more than two accounts and errors can still occur if not properly executed. The use of T-accounts is not a requirement for double-entry accounting, but a visual aid often used to record transactions.

Double-Entry Accounting Is an Accounting System