Why do entities divide assets, liabilities, and owners' equity into sub-accounts rather than accumulating data simply as assets, liabilities, and owners' equity?
Answer to relevant QuestionsHow should an entity determine the number of accounts it should keep in its general ledger? Explain how information recorded in the general journal (using journal entries) is organized differently from the information in the general ledger (posted from the general journal)If cash increases when a debit is made to the cash account, why does the bank credit your account when you make a deposit? For each of the following transactions or economic events, indicate the impact on the elements of the accounting equation (whether each element increases, decreases, has no net effect, or there is no impact):a. Purchase of ...Provide a description of the event represented by each of the following journalentries.
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