Define double entry?

Double entry is an accounting principle that states that every financial transaction has equal and opposite effects in at least two different accounts. This means that for every debit entry made in one account, there must be a corresponding credit entry made in another account. Double entry accounting helps ensure accuracy and consistency in financial records by providing a systematic way to record and track all financial transactions.

Double-entry accounting is a method of bookkeeping that records each financial transaction in two or more accounts. For example, when a company buys inventory on account, the transaction is recorded in the Inventory account (an asset) and the Accounts Payable account (a liability). The total of all debits must always equal the total of all credits, which ensures that the accounting equation (Assets = Liabilities + Owner's Equity) is always in balance.