4RQ
Question
Accounting uses a double-entry system. Explain what this sentence means
Step-by-Step Solution
Verified Answer
Accounting is the process of recording and reporting business transactions and the sentence means every transaction is recorded by following double-entry book-keeping.
1Definition of Accounting
Accounting is the process of recording, reporting, and analyzing financial transactions during the year.
2Meaning of sentence
The accounting uses a double-entry system, this means that every transaction is recorded in dual effect. A transaction is considered to be complete when both aspects of the transaction are recorded in the books.
Other exercises in this chapter
2RQ
What is the purpose of the chart of accounts? Explain the numbering typically associated with the accounts.
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What does a ledger show? What’s the difference between a ledger and a chart of accounts?
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What is a T-account? On which side is the debit? On which side is the credit? Where does the account name go on a T-account?
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When are debits increases? When are debits decreases?
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