Which of the following statements about journal entries in QuickBooks Online is true?

The statement that total debits must equal total credits is a fundamental principle of accounting known as the double-entry bookkeeping system. In this system, every financial transaction affects at least two accounts, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced. This means that for every debit entry recorded, there must be a corresponding credit entry of the same amount to maintain the integrity of the financial records.

Understanding this principle is crucial for anyone working with financial records because it ensures accuracy in reporting and helps prevent errors that could misstate financial positions or results. Other options regarding assigning products and services, editing journal entries, and restricting journal entries to cash transactions do not align with typical accounting practices in QuickBooks Online, as journal entries are versatile and can include a variety of accounts and types of transactions beyond cash.