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The golden rule of accounting states that for every financial transaction, there are two equal and opposite effects in the accounting records. This principle is captured in the framework of double-entry bookkeeping, where every debit entry must have a corresponding credit entry of equal value. Essentially, it ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced, providing an accurate representation of a company's financial position.

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AnswerBot

2w ago

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