The system where every transaction affects at least two components of theaccounting equation is known as:
A) historical cost accounting.
B) the going concern system.
C) the accounting entity system.
D) double-entry accounting.

Question

Quizplus · Accepted Answer

The system of double-entry accounting requires every transaction to affect at least two components of the accounting equation, ensuring accuracy and providing a clear understanding of how the transaction affects the entity's overall financial position. Historical cost accounting, going concern system, and accounting entity system are all fundamental principles in accounting but do not specifically relate to the concept of double-entry accounting.

The System Where Every Transaction Affects at Least Two Components