In double-entry bookkeeping, each transaction affects at least how many accounts?
AnswerTwo
Every entry has an equal debit and credit, so it touches at least two accounts.
Business · Facts & stats
Ledger facts & stats
7 fact-checked facts about ledgers, bookkeeping and double-entry accounting, each with the reason behind it. 5 more are in today's round and join this page after it closes.
The basics
What is a ledger?
AnswerA record of accounts and their transactions
A ledger groups transactions by account to show balances.
Going deeper
Who is often called the father of accounting?
AnswerLuca Pacioli
Pacioli published the first detailed printed description of double-entry bookkeeping.
What does a trial balance check?
AnswerThat total debits equal total credits
If the totals don't match, an error has been made somewhere.
A blockchain is an example of what?
AnswerA distributed ledger
Copies of the ledger are shared and synced across many computers.
Expert level
Accumulated depreciation is an example of what kind of account?
AnswerA contra-asset account
It offsets the asset it relates to, reducing its book value.
What is the normal balance of a revenue account?
AnswerCredit
Revenue increases equity, so it normally carries a credit balance.
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