About Double Entry Accounting

Business transactions were defined earlier in this document as economic events that affect the financial position of a business entity. To measure a business transaction, the accountant must determine:

• When the transaction occurred (recognition).
• What value should be placed on the transaction.
• How components of the transaction should be categorized (classification).

This topic contains the following sub-topics:

• About Debits and Credits in Double Entry Accounting
• About Commonly Used Accounts in Double Entry Accounting