In double-entry accounting, every transaction has both a debit and a credit side, and these sides will always be equal.

• A. True
• B. False
• C. Entries are not required to have both sides
• D. The debit side never equals the credit side

Answer: (A)

In double-entry accounting, every transaction is recorded with at least two accounts and the total amount recorded on the debit side must equal the total on the credit side. This balance preserves the accounting equation (Assets = Liabilities + Equity) and helps keep the ledger error-free. For example, buying office supplies for cash of 300 dollars creates a debit to Office Supplies for 300 and a credit to Cash for 300—the two sides balance. Even when a transaction affects more than two accounts, the sum of all debits will still equal the sum of all credits. The statement that these sides don’t have to match or that only one side is used is incorrect.