Which One of the Following Statements Is Correct Regarding the Basic

question 63

Multiple Choice

Which one of the following statements is correct regarding the basic principle of the double entry system?

• A) for every debit there must be a corresponding credit of larger amount and for every credit, there must be a corresponding debit of less amount
• B) for every debit there must be a corresponding credit of less amount and for every credit, there must be a corresponding debit of larger amount
• C) for every debit there must be a corresponding credit of equal amount and for every credit, there must be a corresponding debit of less amount
• D) for every debit, there must be a corresponding credit of equal amount and for every credit, there must be a corresponding debit of equal amount

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Definitions:

Cash Payments

Transactions where the payment of goods or services is made with currency or banknotes rather than by check or electronic means.