This system created a self-balancing accounting system owners could use when recording financial transactions. Double-entry accounting eventually gave rise to the accounting equation.

Basic Accounting Equation The basic accounting equation reflects the principle of duality in that each accounting transaction is recorded using both debit and credit entries.

The most important accounting formulas are practical and intuitive, making them easy to remember and apply.

Accounting is the process of keeping track of all financial transactions within a business, such as any money coming in and money going out. It’s not only important for businesses in terms of ...