Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 42)
What does the 'Debits must equal Credits' rule ensure in accounting?
Accurate recording of all cash transactions
The matching of revenue and expenses
The accounting equation remains balanced
All assets are properly valued.
Explanation
This fundamental rule guarantees that the accounting equation (Assets = Liabilities + Equity) is always in balance.
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