In a double-entry system of accounting, why must total debits always equal total credits?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

See More Books

Question Posted: Dec 30, 2011 03:24 AM

See More Questions

In what type of accounting system must debits always equal credits? What is the accounting identity? What is the connection between "debits always equal credits" and the accounting identity?
Luxembourg: Balance of Payment Current Account Credits Debits Exports 292,648 Goods 16,046 Services 84,981 Income 191,621 Imports -289,773 Goods -18,223 Services -64,288 Income -207,262 Trade Balance...
The following table describes a randomized trial comparing an experimental medication to a placebo for treatment of reflux. Experimental Treatment Placebo (n = 100) Patient Characteristics (n = 100)...
Keyser Company is preparing its manufacturing overhead budget for 2016. Relevant data are as follows: 1. Units to be produced (by quarters): 10,000, 12,000, 15,000, 18,000 2. Direct labour: 1.5 hours...
Baseball Ltd intends to introduce a new product that is expected to produce the following profits over a period of six years. The project will require the use of a machine that was purchased some...
There were 970 movies made in Hollywood between 2007 and 2013. Suppose that, for a documentary about Hollywood film crews, a random sample of 5 of these movies will be selected for in-depth...
In this chapter we discuss the Joe Paterno matter at Penn State. Another situation where a respected individuals reputation was tarnished by personal decisions having nothing to do with performance...
Felix & Company reports the following information. Period Units Produced Total Costs 1234567890 0 640 1,040 $ 4,740 4,040 4,440 1,440 5,040 1,840 4,140 2,240 4,340 2,640 8,840 3,040 16,240 3,440...
The average life expectancy for an elephant is 24 years longer than the life expectancy for a chimpanzee. If the total of these life expectancies is 130 years, find the life expectancy of each.
What are the advantages of a computer-based accounting system? Does such a system eliminate the need for human judgment? Explain.
Explain the increase/decrease, debit/credit relationship of asset, liability, and owners equity accounts.
Describe various principles identified in the medical code of ethics.
Hottie Inc., has the following standard and actual costs for the period. Hottie Inc Standard Costs Costs Standard Standard cost per unit Direct Materials 15 pounds @$4/pound 60 Direct Labor 3 hours...
Nicole decides that paying a $150 a month premium for car insurance is worth it because she will be sharing her liability with the insurance company this is an example of making a rational decision...
Describe the similarities about "The Art World's Amazing Spider Man", Mel Chin y "Wheatfields" de Agnes Denes?
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity...
Office Palace, Inc., signed a contract to lease an all-in-one printer to a new customer, Ashley, on December 27, 2023. The contract called for rent of $600 per month for a period of 36 months...
Curiously, in the three largest airline markets, the US, EU, and China, there are three dominant full- service network carriers or airline groups. Who are these FSNCs in each market?
What is the role of business risk analysis in the audit planning process?
In the 2016 presidential election, an exit poll of 100 voters produced the results in the table (23 men voted for Clinton, 29 women for Clinton, 26 men for Trump, and 22 women for Trump). Let the...
Describe the types of items that would be reported in the extraordinary items section of the income statement.
Larry Carver was interested in investing in Maroon Corporation. What types of tools should Larry use to evaluate the company?
McCormick Corp. reported the following on its comparative income statement: Prepare a horizontal analysis of revenues and gross profitboth in dollar amounts and in percentagesfor 2016 and2015. 2014...
The sheet Inventory lists a grocery store's inventory for two months. Calculate the percent change for each item to two decimal places. If the formula gives an error, put "Initial Stock" in the cell....
A local manufacturer produces two different products on the same production line. Product A requires .5 hours of labor while product B requires .8 hours of labor. The total labor available in any one...
Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Required:...

In a double-entry system of accounting, why must total debits always equal total credits?

Question:

Step by Step Answer:

Each time accounts are debited other accounts have to be c...View the full answer

Accounting concepts and applications

Students also viewed these Accounting questions