Flashcards
my flashcards
Cards in this deck (3)
- 1What is double entry book keeping?Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account.
- 2Give a definition of double entry book keepingDouble entry accounting is based on the fact that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the equation Assets = Liabilities + Equity, whereby each entry is recorded so as to maintain the relationship.
- 3What is the difference between double entry book keeping and single entry book keeping?Single-entry system of bookkeeping requires inputting the entry only once in either the credit column or the debit column. Double-entry system requires putting one entry twice, once in the credit column and once in the debit column of another account.