Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 42)
What is the primary aim of the accounting principle of 'duality'?
To provide a true and fair view of the performance of a business.
To ensure that all assets and liabilities are correctly recorded in the accounting records.
To make financial statements understandable.
To separate the personal financial activities from business activities.
Forklaring
The principle of duality states that for every accounting entry, there must be an equal and opposite entry. This is fundamental to the preparation of financial statements in order to provide a true and fair view of the business' performance.