There are two things to know, Single-track vs. Multi-track. Single-track recording is essentially recording all of your inputs into a one mixed track while multi-track recording takes each input device and records it to a separate track.
How this is done depends on a few things. You need to have a good sound card that's capable of having multiple inputs simultaneously available for input. A good sound card with good drivers means perfect audio. I also recommend a good set of headphones, so you can listen to the whole process and not to worry about feedback.