Which of the following is NOT a characteristic of the double entry system?

In the double entry system of accounting, each transaction indeed affects at least two accounts, which ensures that the accounting equation (Assets = Liabilities + Equity) always holds true. This fundamental characteristic is crucial not just for the accuracy of financial reporting but also for detecting errors and ensuring that the accounting records are balanced.

The double entry system is designed to provide a comprehensive reflection of a company's financial position, as it accounts for all aspects of each transaction. This characteristic contributes to producing financial statements that accurately represent the business’s financial health.

Additionally, this system requires detailed record-keeping because each entry must have a corresponding opposite entry to maintain balance. This thorough documentation is vital for auditors, management, and stakeholders who rely on reliable and complete records for decision-making.

In contrast, the notion that transactions are recorded only once is incorrect. In the double entry system, every entry has a dual impact, meaning that for every debit, there must be a corresponding credit. This ensures that all entries are logged with accuracy and clarity across multiple accounts, reinforcing the system’s integrity and reliability.