What is a double-entry accounting system?

Answer by  Kimm22 (130)

A double-entry accounting system tracks both aspects of any transaction: credit and debit. This dual concept system allows for any errors to be easily detected, and is essential in tracking the profit and/or liabilities of any business.

Answer by  brians6000 (640)

The double entry accounting method tracks Credit and Debit entries in two seperate accounts, for each individual transaction. The method is used to reduce errors, as each account must balance equally. The system is centered around the equation of Equity = Assets-Liabilities.