All of the following statements are true of double-entry accounting except: A.Th
ID: 2424127 • Letter: A
Question
All of the following statements are true of double-entry accounting except:
A.There is a need for both debit and credit entries for each and every transaction.
B. Double-entry accounting can only be used with computer-based accounting systems.
C. The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
D. Double-entry accounting allows us to measure net income at the same time we record the effect of transactions on the balance sheet accounts.
Explanation / Answer
The answer is B.
It is not necessary have computers for double entry accounting. Accounting is a practice which is prevalent since the ancient times to keep a record of business transactions. At that time, there were no computers, no technology.