Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 3 - The Accounting Information System - Questions - Page 137: 7

Answer

No, Steve is not correct.

Work Step by Step

The double-entry system means each transaction must affect two or more accounts to keep the basic accounting equation in balance. In other words, for each transaction, debits must equal credits: The equality of debits and credits provides the basis for the double-entry accounting system.
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