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Questions and Answers
What does the Double-Entry Accounting System require?
What does the Double-Entry Accounting System require?
What are the Rules of Debit and Credit?
What are the Rules of Debit and Credit?
Specific rules for recording debits and credits based on the type of account.
What determines the normal balance of an account?
What determines the normal balance of an account?
What is a Record in accounting?
What is a Record in accounting?
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What does Journalizing refer to?
What does Journalizing refer to?
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What is a Journal Entry?
What is a Journal Entry?
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Study Notes
Double-Entry Accounting System
- Each business transaction is recorded in a minimum of two accounts.
- Total debits must equal total credits, maintaining balance in the accounting equation.
Rules of Debit and Credit
- Debits and credits are recorded based on the type of account involved.
- Specific rules dictate whether an increase or decrease in an account is recorded as a debit or a credit.
Normal Balance of an Account
- Accounts may have a normal balance that is either debit or credit.
- The classification depends on whether increases are recorded as debits or credits, influencing account management.
Record
- A record is the foundational documentation for transactions.
- It captures the effects of business activities systematically.
Journalizing
- The process of journalizing involves systematically recording transactions.
- This ensures that each transaction is documented accurately within the journal.
Journal Entry
- A journal entry is the formal method used to log a transaction.
- It details the accounts affected, the amounts, and the date of the transaction for clarity.
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Description
Explore the fundamentals of the Double-Entry Accounting System through these flashcards. Understand key concepts such as the rules of debit and credit that govern this essential accounting method. Perfect for students looking to strengthen their accounting skills.
