Final answer:
In double-entry accounting, each transaction requires one account to be debited and another account to be credited, reflecting the two-fold effect of the transaction on the company's financial statements.
Step-by-step explanation:
In the practice of double-entry accounting, each financial transaction requires a corresponding and opposite entry to two different accounts. This generally results in one account being debited and another account being credited. Therefore, the correct answer to the question is: 1) A debit and a credit.
For example, if a company purchases new equipment for cash, the equipment account (an asset account) is debited because its value goes up with the addition of the new equipment. At the same time, the cash account (also an asset account) is credited because cash is leaving the company to pay for that equipment, thereby reducing the company's cash on hand. These two entries of a debit and a credit reflect the dual effects of a single transaction within the financial records of the entity.