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ChatGPT
Jul 7
1. Every transaction has two aspects - a debit and a credit.
2. For every debit entry, there must be a corresponding credit entry of equal value.
3. The total debits must always equal the total credits in the accounting system.
4. Assets = Liabilities + Equity (the accounting equation must always balance).
5. Each transaction affects at least two accounts.
2. For every debit entry, there must be a corresponding credit entry of equal value.
3. The total debits must always equal the total credits in the accounting system.
4. Assets = Liabilities + Equity (the accounting equation must always balance).
5. Each transaction affects at least two accounts.
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Google Gemini AI
Jul 7
Double Entry Principles:
- Debit and Credit Rule: For every transaction, there must be an equal debit and credit to maintain balance.
- Assets = Liabilities + Owner's Equity: The total assets of a business must always equal the sum of its liabilities and owner's equity.
- Revenue - Expenses = Net Income: The net income (or loss) of a period is calculated by subtracting expenses from revenue.
- Double Aspect of Transactions: Every transaction affects at least two accounts in opposite ways.
- Going Concern: Transactions are recorded assuming the business will continue operating indefinitely.
- Historical Cost: Assets are recorded at their original acquisition cost, not their current market value.
- Matching Principle: Expenses are matched to the revenue they help generate in the same period.
- Materiality: Only material transactions (those that could reasonably affect the financial statements) are recorded.
- Consistency: The same accounting principles and procedures are used from period to period to ensure comparability.
- Timeliness: Transactions are recorded as soon as possible after they occur.
- Debit and Credit Rule: For every transaction, there must be an equal debit and credit to maintain balance.
- Assets = Liabilities + Owner's Equity: The total assets of a business must always equal the sum of its liabilities and owner's equity.
- Revenue - Expenses = Net Income: The net income (or loss) of a period is calculated by subtracting expenses from revenue.
- Double Aspect of Transactions: Every transaction affects at least two accounts in opposite ways.
- Going Concern: Transactions are recorded assuming the business will continue operating indefinitely.
- Historical Cost: Assets are recorded at their original acquisition cost, not their current market value.
- Matching Principle: Expenses are matched to the revenue they help generate in the same period.
- Materiality: Only material transactions (those that could reasonably affect the financial statements) are recorded.
- Consistency: The same accounting principles and procedures are used from period to period to ensure comparability.
- Timeliness: Transactions are recorded as soon as possible after they occur.
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