The correct answer is: D. All of the above
A double-entry bookkeeping system is a system of accounting in which every financial transaction is recorded twice, once as a debit and once as a credit. This system helps to ensure that the accounting records are accurate and complete.
Personal accounts are accounts that record transactions that affect the owner of the business. For example, a business might record a loan from the owner as a debit to the owner’s capital account and a credit to the loan payable account.
Real accounts are accounts that record transactions that affect the assets, liabilities, and equity of the business. For example, a business might record the purchase of a new piece of equipment as a debit to the equipment account and a credit to the accounts payable account.
Nominal accounts are accounts that record transactions that affect the income and expenses of the business. For example, a business might record the sale of goods as a debit to the accounts receivable account and a credit to the sales account.
By recording all financial transactions in a double-entry bookkeeping system, businesses can ensure that their accounting records are accurate and complete. This information can then be used to make informed decisions about the future of the business.