Practice question · Select all that apply
Which statements about double-entry bookkeeping are true?
Hints
- Duality and equality of totals are the two rules.
- Neither rule guarantees that the right accounts were chosen.
Show the answer
- A. Every transaction generates at least two entries
- C. Total debits must equal total credits in every entry
Why
Duality and balance are the two rules. But debit does not always mean gain (debiting an expense is a loss), and a balanced trial balance can still hide reversed entries, offsetting errors, or omissions.
Practise Double-Entry Bookkeeping
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