Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 17)

What is 'Double-entry bookkeeping'?

A system where every transaction is recorded once.

A system where every transaction is recorded twice.

A system where every transaction is recorded with a debit and a credit.

A system where only cash transactions are recorded.

Double-entry bookkeeping requires that every transaction affects at least two accounts with equal and opposite entries (a debit and a credit).