In double-entry accounting, every transaction is recorded using Credit and Debit entries. Each transaction affects at least two accounts, where one account is debited and the other is credited, ensuring that the accounting equation (Assets = Liabilities + Equity) stays balanced. Thus, the correct term related to how transactions are recorded in double-entry accounting among the options you provided is Credit.
In double-entry accounting, every transaction is recorded in what way?
Dividend
Refund
Credit
Counterbalance
1 answer