What is double-entry accounting? A budgeting method where you plan for double every expected expense to ensure that you never budget less than you need. A budgeting method where you record your earnings twice: once to track where your money is going, and once to decide what it is for. A department at most companies that handles all the money and tracks receipts. A way to double-check your expenses where you go through all of your receipts twice each month.

Question

What is double-entry accounting?  A budgeting method where you plan for double every expected expense to ensure that you never budget less than you need. A budgeting method where you record your earnings twice: once to track where your money is going, and once to decide what it is for. A department at most companies that handles all the money and tracks receipts. A way to double-check your expenses where you go through all of your receipts twice each month.

GPT-4o mini · Answer

Double-entry accounting is a system that records each financial transaction in two accounts: once as a debit and once as a credit. This method ensures that the accounting equation (Assets = Liabilities + Equity) always remains in balance. It is a fundamental concept in accounting that helps to maintain accuracy and provides a more complete picture of a company's financial situation, as every entry is offset by another.

The options you provided do not accurately describe double-entry accounting. The closest correct definition is: "A method that records each transaction in terms of both its source and application of funds, ensuring that the accounting equation remains balanced."