Each transaction recorded must always affect exactly two accounts (Answer A). This principle is fundamental to double-entry accounting, where every financial transaction is recorded in at least two accounts to ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced.
When a transaction occurs, it impacts one account in a way that it increases or decreases and must correspondingly impact another account to reflect that change. For example, if a business takes a loan (an increase in cash or assets), it results in a liability (the obligation to repay the loan). This dual impact keeps the books balanced and provides an accurate financial picture.
Options B and C are incorrect since they do not adhere strictly to the requirement of double-entry accounting. Option D is also incorrect because while assets and liabilities must balance, transactions can also affect equity accounts, making the original equation dynamic and interconnected across various account types. Therefore, to maintain accuracy in accounting records, each transaction must always affect two accounts.