With double-entry accounting, each transaction requires:

• A. an equal number of entries in revenue and expense accounts
• B. only a single entry, either a debit or a credit
• C. entries only to asset accounts
• D. at least one debit and one credit entry of equal amounts

Answer: (D)

Verified step by step guidance

1. Understand the concept of double-entry accounting: Double-entry accounting is a system where every financial transaction affects at least two accounts, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced.
2. Recognize the rule of debits and credits: In double-entry accounting, every transaction must have at least one debit and one credit entry, and the total debits must equal the total credits.
3. Analyze the options provided: The first option suggests equal entries in revenue and expense accounts, which is incorrect because transactions can involve other types of accounts (e.g., assets, liabilities). The second option suggests only a single entry, which contradicts the double-entry principle. The third option limits entries to asset accounts, which is also incorrect as transactions can involve liabilities, equity, revenue, or expenses.
4. Identify the correct principle: The correct answer is that each transaction requires at least one debit and one credit entry of equal amounts, as this ensures the accounting equation remains balanced.
5. Apply this understanding to real-world scenarios: For example, if a company purchases equipment for cash, the Equipment account (an asset) is debited, and the Cash account (another asset) is credited for the same amount, maintaining the balance.