All of the following occur with a double-entry accounting system except:
A) The accounting equation remains in balance.
B) The sum of all debits is always equal to the sum of all credits in each journal entry.
C) Each business transaction will have only two entries.
D) Every transaction affects at least two accounts.

Question

Quizplus · Accepted Answer

Each business transaction can involve multiple accounts, so it may require more than two entries. Therefore, option C is the only one that is incorrect. The other options are all characteristics of a double-entry accounting system.

All of the Following Occur with a Double-Entry Accounting System