Under the double-entry system, every business transaction is recorded with:
Correct answer: A. Equal debit and credit entries
- A. Equal debit and credit entries
- B. One debit and no corresponding credit
- C. Two credit entries of equal value
- D. A debit entry only for cash items
Explanation
Double-entry bookkeeping records the two aspects of every transaction. The total debit amount must equal the total credit amount, which keeps the accounting equation balanced.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
A business purchases furniture for cash. What is the effect on the accounting equation?
A company receives services in December but pays for them in January. Under accrual accounting, when is the expense recorded?
Which situation best illustrates the matching concept?
The prudence concept requires an accountant to:
A business uses the straight-line depreciation method each year without a valid reason for changing it. This practice reflects the principle of: