BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Two entries in one book
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Two entries in one account
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Entry in both sides of one transaction
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Entry in two personal accounts
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Detailed explanation-1: -Double-entry bookkeeping is a method of recording transactions where for every business transaction, an entry is recorded in at least two accounts as a debit or credit. In a double-entry system, the amounts recorded as debits must be equal to the amounts recorded as credits.
Detailed explanation-2: -Double-entry bookkeeping says each accounting transaction has two sides. The general ledger is a record of the two sides of the transaction-a debit and a credit.
Detailed explanation-3: -What Is Double Entry? Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.
Detailed explanation-4: -The double entry bookkeeping principles are based on the idea that every transaction has two sides. For every inflow of value, there must be an equal outflow of value. Therefore, record every transaction twice.