double entry

Thân thiện

A bookkeeper records a transaction using double entry in a ledger.

Definition

Noun: 1. A system of bookkeeping in which every transaction is entered twice, once as a debit in one account and once as a credit in another account. This method ensures the accounting equation (Assets = Liabilities + Equity) always remains in balance and provides a self-checking mechanism for accuracy.

Usage

"Double entry" is an uncountable noun used to describe the foundational system of modern accounting. It is typically used in the phrase "double-entry bookkeeping" or "the double-entry system."

Examples

• All modern businesses use double entry to maintain accurate financial records.
• The principle of double entry requires that for every debit, there must be a corresponding and equal credit.
• Learning double-entry bookkeeping is essential for anyone studying accounting.

Advanced Usage

• The double-entry system: The complete framework of accounting based on the double-entry principle.
  • The invention of the double-entry system in Renaissance Italy was crucial for the development of modern commerce.
• To keep books on a double-entry basis: A formal way to state that one uses this accounting method.
  • The corporation keeps its books on a strict double-entry basis.

Variants and Related Words

• Double-entry bookkeeping (n. phrase): The full term for the practice of using the double-entry system.
• Single-entry bookkeeping (n. phrase): A simpler, less robust bookkeeping method where transactions are recorded only once, often contrasted with double entry.

Synonyms

• Double-entry bookkeeping (the practice itself)
• The double-entry system

Antonyms

• Single entry
• Single-entry bookkeeping

Related Idioms and Phrases

• Debits and credits: The two fundamental aspects of every transaction in a double-entry system.
  • Understanding debits and credits is the first step to mastering double entry.
• The books are in balance: A result of correctly applied double-entry bookkeeping, meaning total debits equal total credits.
  • After reconciling the accounts, the accountant confirmed the books were in balance.

Học thuật

Noun

1. bookkeeper debits the transaction to one account and credits it to another

Từ đồng nghĩa

• double-entry bookkeeping