Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 48 - No. 32)
Which of the following statements best describes the purpose of double-entry bookkeeping?
To record transactions in a single account.
To ensure the accounting equation remains balanced.
To simplify the financial reporting process.
To reduce the number of transactions recorded.
Explanation
Double-entry bookkeeping ensures the accounting equation (Assets = Liabilities + Equity) always balances.
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