In the past, which system was exclusively used to record financial transactions?

The pegboard system is recognized as an exclusive method used in the past for recording financial transactions. This system involved a physical, manual process where transactions were entered onto a pegboard, which often included multiple layers of paper and punched holes designed for organization and tracking. Each transaction was often recorded in real time, and it provided a clear and organized way to document accounting records, allowing for easy referencing.

Historically, businesses utilized the pegboard system before digital accounting programs became prevalent, as it allowed for a straightforward method to handle cash flow and monitor customer accounts. It was particularly popular among small to mid-sized businesses that required an efficient way to manage their finances without incurring the cost of more complex accounting systems.

In contrast, while the double-entry and single-entry systems describe the types of ledger methods for recording financial transactions, they do not refer to a specific physical system like the pegboard. The manual-entry system suggests any method relying on hand-written records, which could include but is not limited to the pegboard method. Therefore, the pegboard system is identified as the exclusive method used historically for recording financial transactions.