Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 26)
What is the primary purpose of double-entry bookkeeping?
To record only cash transactions.
To ensure the accounting equation always remains in balance.
To track the personal assets of the business owner.
To simplify the accounting process.
Explanation
Double-entry bookkeeping ensures the accounting equation (Assets = Liabilities + Equity) always stays in balance by recording the dual effect of each transaction.
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