What does the double-entry method consist of?

The double-entry method consists of recording each financial transaction in at least two different accounts, with one account debited and the other credited. This method ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced and accurate. By using this method, businesses can track their financial transactions more effectively and ensure that their financial statements are accurate.

The double-entry method consists of recording every financial transaction in at least two accounts, one that is debited (increased) and one that is credited (decreased).