one account twice
two accounts at the same time
one account in two ways
two accounts in two ways each
Answer is Right!
Answer is Wrong!
The correct answer is: D. two accounts in two ways each
In the double entry system of bookkeeping, every transaction affects two accounts in two ways. For example, if you buy a new computer for your business, you will debit the asset account “Computers” and credit the expense account “Purchases”. This means that the value of your computer asset will increase by the amount you paid for it, and the amount of money you have spent on purchases will increase by the same amount.
The double entry system is designed to ensure that all financial transactions are recorded accurately and completely. It is also used to track the financial performance of a business.
Here is a brief explanation of each option:
- Option A: One account twice. This is not correct because every transaction affects two accounts.
- Option B: Two accounts at the same time. This is not correct because every transaction affects two accounts in two different ways.
- Option C: One account in two ways. This is not correct because every transaction affects two accounts in two different ways.
- Option D: Two accounts in two ways each. This is the correct answer because every transaction affects two accounts in two different ways.