A fundamental accounting concept where every transaction or event affects at least two different accounts. In modern day accounting and bookkeeping, the double-entry accounting system is expressed as (Assets = Liabilities + Equity).
Definition from Nolo’s Plain-English Law Dictionary
A system of accounting that records each business transaction twice (once as a debit and once as a credit). For example, if you pay your monthly rent of $1,000, you you make a debit of $1,000 to the rent expense account and a credit of $1,000 to cash. Used for tracking inventory, loans, assets, and liabilities. Compare: single-entry accounting
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:15 pm