The correct answer is C. Recording two aspects of every transaction.
Double-entry bookkeeping is a system of accounting in which every financial transaction is recorded in at least two accounts. The two accounts are usually the account for the asset or expense that is being increased, and the account for the liability or revenue that is being decreased.
For example, if a company buys a new piece of equipment, the transaction would be recorded in the asset account for equipment, and the liability account for accounts payable. The amount recorded in the asset account would be the cost of the equipment, and the amount recorded in the liability account would be the amount that the company owes to the supplier for the equipment.
Double-entry bookkeeping is a system that is designed to ensure that all financial transactions are recorded accurately and completely. It is also a system that is designed to provide a clear and concise picture of a company’s financial position.
Option A is incorrect because recording entries in a journal is only one part of double-entry bookkeeping. The other part is recording entries in ledger accounts.
Option B is incorrect because recording entries in ledger accounts is only one part of double-entry bookkeeping. The other part is recording two aspects of every transaction.
Option D is incorrect because recording every transaction in books is not the same as double-entry bookkeeping. Double-entry bookkeeping is a system that requires that every financial transaction be recorded in at least two accounts.