Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 10)
What is the purpose of the debit and credit system in accounting?
To track the amount of cash in the business.
To ensure that the accounting equation remains in balance.
To record all transactions in chronological order.
To show the company's total revenue.
Explanation
Debits and credits are used to record transactions in a way that ensures the accounting equation always balances.
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