Question

Double entry system is _a) reporting system b) recording system c) Financial statement preparation system d) Debit and credit determining system which one is correct
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Answer 1

Answer:

Recording System

Answer 2

Double entry system is d) Debit and credit determining system

• Double entry system is the system used by accountants while preparing balance sheets and book keeping.
• The system is such that every entry has to be opposite and corresponding to each other.
• It helps in balancing the accounts, It does so as each debit is credited and each credit is debited in the balance sheet.