Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the primary purpose of double-entry bookkeeping?
What is the primary purpose of double-entry bookkeeping?
- To detect financial errors and fraud (correct)
- To record only credits
- To record only assets
- To record only debits
In double-entry bookkeeping, a transaction always affects how many accounts?
In double-entry bookkeeping, a transaction always affects how many accounts?
- One
- Three
- Two (correct)
- Four
What are the two corresponding sides in the double-entry system called?
What are the two corresponding sides in the double-entry system called?
- Asset and liability
- Credit and debit (correct)
- Cash and loan payable
- Income and expense
In a double-entry bookkeeping transaction, what must always be equal?
In a double-entry bookkeeping transaction, what must always be equal?
Signup and view all the answers
If a business takes out a bank loan, which accounts are affected in the double-entry bookkeeping system?
If a business takes out a bank loan, which accounts are affected in the double-entry bookkeeping system?
Signup and view all the answers
