Which of the following is NOT a characteristic of double-entry bookkeeping?

Double-entry bookkeeping is a fundamental accounting system that ensures the financial stability of an organization by maintaining accurate and balanced records. One of the key characteristics of this system is that it involves recording every transaction in at least two accounts. This mechanism underpins the idea that for every debit entry made, there is a corresponding credit entry, thus maintaining balance in the accounting records.

Another critical aspect is that each account indeed has a debit and a credit side. This dual-sided nature allows for comprehensive tracking of financial events that impact the organization's overall financial position.

Moreover, double-entry bookkeeping maintains the accounting equation, which states that assets must equal liabilities plus equity. This principle underscores the idea that all financial positions are interconnected and must remain balanced, reflecting a true picture of a company’s financial health.

The assertion that double-entry bookkeeping must involve cash transactions only does not align with its definition or functioning. Double-entry accounting applies to a variety of transactions beyond just cash, including credit transactions, debits, and other forms of exchanges, thus reinforcing the system's versatility in accurately capturing the full spectrum of an organization's financial activities.