Bitget
Bitget

# GLOSSARY

Finance Dictionary : Double-Entry Bookkeeping

Double-Entry Bookkeeping

KEYTAKEAWAYS

Learn about Double-Entry Bookkeeping, a method that records financial transactions as debits and credits, ensuring accurate and balanced accounting records.


CONTENT

DEFINITION

Double-entry bookkeeping is a systematic and standardized accounting method used by businesses and organizations to record financial transactions. In this method, every financial transaction is recorded in two separate accounts: one as a debit and the other as a credit. This dual-entry system ensures that the accounting equation remains in balance, where assets equal liabilities plus equity.

 

The concept of double-entry bookkeeping was pioneered by Luca Pacioli, an Italian mathematician and Franciscan friar, in the 15th century. It has since become the cornerstone of modern accounting and financial reporting.

 

This method offers numerous advantages, including enhanced accuracy, error detection, and the ability to produce comprehensive financial statements. It is widely used by businesses, accountants, and financial professionals to maintain financial records and ensure the integrity of financial data.

 

More From CoinRank


DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

CoinRank Exclusive brings together primary sources from various fields to provide readers with the most timely and in-depth analysis and coverage. Whether it’s blockchain, cryptocurrency, finance, or technology industries, readers can access the most exclusive and comprehensive knowledge.


NEWSLETTER

SUBSCRIBE

CoinRank