In double entry system of book-keeping every business transaction effects ________________.

Two accounts with equal but opposite effect.

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Two sides of the same account.

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The same account on two different dates.

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All of the above

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Solution

The correct option is A Two accounts with equal but opposite effect.
Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.

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In double entry system of book-keeping every business transaction effects ________________.

The correct option is A Two accounts with equal but opposite effect.Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.

The correct option is A Two accounts with equal but opposite effect.
Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.