Why do we have double entry accounting?

Double entry accounting allows for the accounting equation to always be in balance (assets = liabilities + owners equity). Every financial transaction in a firm has a positive and negative entry called credits and debits. This system provides the economic and business realities of a firm.

One thought on “Why do we have double entry accounting?”

  1. Hello Kylie,

    I love the way your blog is set up. The posts are succinct and easy to read. Great work. I also have never heard from Wood Group but would like to read more about your journey with this pretty wealthy company.

    Like

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