Which of the following is not true with a double-entry accounting system? A. Every transaction affects at least two accounts. B. The accounting equation remains in balance. C. Each business transaction will have two debits. D. The sum of all debits is always equal to the sum of all credits in each journal entry.

Question

Joe Gross

Business

21 June, 12:17

Which of the following is not true with a double-entry accounting system? A. Every transaction affects at least two accounts. B. The accounting equation remains in balance. C. Each business transaction will have two debits. D. The sum of all debits is always equal to the sum of all credits in each journal entry.

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Answers (1)

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Areli · Answer 1

C. Each business transaction will have two debits.

Explanation:

In a double-entry system, there is debit to one account and credit another account. The transaction will not only involve debiting of two accounts because that will result in an incomplete recording of that particular transaction. To balance, it is required that the other account is credited because in double entry system the impact on the accounts is equal and opposite.