New Enroll in RBI Grade B New Batch - Starts on May 21

    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.

    Practice Next