I’m working on a accounting question and need an explanation to help me learn.
Threaded Discussion Instructions
Review the threaded discussion question posted by the course faculty. You are required to submit at least two (2) responses to this question by 11:59pm EST on Sunday. The first response should be to the faculty; the second response can be directed either to the faculty or to other students in the class. Your responses should be substantive, and reflect analytical and critical thinking skills, as well as, a thorough understanding of your reading assignment. A typical response should consist of 100-150 words in a single-spaced format. Refer to the TDQ Rubric below for more guidance on how to respond.
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First response:
Explain the concept of double entry bookkeeping.
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Second response:
What is double entry bookkeeping? Well, double entry bookkeeping is a system of bookkeeping where a transaction is equally recorded in two or more accounts. If a debit is made in one account, then a credit is made in another. Debits increase assets as well as decrease liability while credits do the opposite. Accounting software is sometimes used to do double entry bookkeeping because it’s a easy way to create reports. Every business transaction made needs to be documented in at least two accounts in the books. The total debits and the total credits must be equal to each other. Your total assets must always be your total liabilities plus assets. Everything has to balance out.
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