Asked by Diante Pierce on Apr 27, 2024
Verified
Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits to be greater than the credits.
Double-Entry Accounting
An accounting method requiring every financial transaction to be recorded in two accounts, one debit and one credit, to keep the accounting equation balanced.
Debits
Accounting entries that increase assets or expenses or decrease liabilities, equity, or revenue, recorded on the left side of an account.
Credits
Entries on the right-hand side of an accounting ledger, indicating increases in liability, equity accounts, and revenue, or a decrease in assets.
- Acquire knowledge on the essential principles of double-entry accounting.
Verified Answer
RP
Romaine PhippsMay 01, 2024
Final Answer :
False
Explanation :
Double-entry accounting requires transactions to affect two or more accounts, but the total of the debits must equal the total of the credits, not be greater.
Learning Objectives
- Acquire knowledge on the essential principles of double-entry accounting.