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      Question

      Which of the following best describes the double-entry

      system in accounting?
      A A system of recording financial transactions that involve recording each transaction twice, once in the debit column and once in the credit column. Correct Answer Incorrect Answer
      B A system of recording financial transactions that involve recording each transaction only once in the ledger. Correct Answer Incorrect Answer
      C A system of recording financial transactions that involve recording transactions in a single column. Correct Answer Incorrect Answer
      D A system of recording financial transactions that involve recording transactions in reverse order. Correct Answer Incorrect Answer

      Solution

      The double-entry system is a method of bookkeeping in which every financial transaction is recorded in two different accounts, one as a debit and the other as a credit. This system is based on the principle that for every debit, there must be a corresponding credit of equal value, and vice versa.

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