Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 15)
What is the purpose of the 'duality principle' in accounting?
To ensure every transaction involves cash.
To ensure every transaction is recorded with two equal and opposite effects.
To track changes in the value of assets.
To simplify the recording of transactions.
Forklaring
The duality principle ensures that every transaction has two equal and opposite effects on the accounting equation.