Asked by Julia Herbst on May 06, 2024
Verified
What is the best definition of double entry accounting?
A) Double entry accounting is a newer method of recording exchanges in a transaction.It is invented to be used in a computerized accounting system.
B) Double entry accounting is used to record what is exchanged in a transaction.Each journal entry should balance,however,in rare circumstances some transactions will not balance.
C) Double entry accounting is used in conjunction with a journal to record what is exchanged in a transaction.Each journal entry must balance.
D) Double entry accounting is used in conjunction with the financial statements to provide a record of what is exchanged in a transaction.
Double Entry Accounting
An accounting method where every transaction affects at least two accounts, involving equal and opposite entries to ensure the accounting equation remains balanced.
Journal Entry
A record that represents a single financial transaction in the books of accounts.
Computerized Accounting System
Software used by companies to manage their financial transactions, records, and reports electronically.
- Grasp the concept and application of double entry accounting.
Verified Answer
NF
Natalie FincherMay 13, 2024
Final Answer :
C
Explanation :
Double entry accounting is a method where every transaction is recorded in at least two accounts - a debit and a credit. Every debit recorded must have an equal and opposite credit recorded in order to maintain accounting balance. This is done using a journal or ledger. Option C is the best choice as it accurately describes the use of a journal in the process.
Learning Objectives
- Grasp the concept and application of double entry accounting.