Question

In double Entry system of Book-keeping every business transaction affects __________.

• A. Two accounts.
• B. Two sides of the same account.
• C. The same account on two different dates.
• D. All of these.

Answer 1

The correct option is A Two accounts.

Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.

For example, when a company borrows $1,000 from a bank, the transaction will affect the company's Cash account and the company's Notes Payable account.