Vidyalelo
Commerce · Q258

Accounting

Graduate and Post Graduate · Commerce · question 258

Q258

Double entry accounting system includes

A.
Accrual accounting only
B.
Cash accounting only
C.
Both cash and accrual accounting
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Double entry accounting system includes both cash and accrual accounting. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.