Double-entry accounting: the key to accurate and complete financial statements.

Double-entry accounting: the key to accurate and complete financial statements.

→ Every transaction has a debit and a credit.

→ Debit increases assets or expenses, decreases liabilities or revenue.

→ Credit decreases assets or expenses, increases liabilities or revenue.

→ Total debits and credits for each transaction must be equal.

→ Sum of all debits and credits in the ledger must be equal.

→ Maintains the accounting equation: Assets = Liabilities + Equity.

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