?What is Double-Entry Accounting, and why is it important

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Double-entry accounting is a system where every financial transaction affects at least two accounts: one account is debited, and another is credited.

Importance:
Ensures Accuracy: Keeps the accounting equation balanced (Assets = Liabilities + Owner’s Equity).
Prevents Errors: Helps detect mistakes, as total debits must equal total credits.
Provides a Clear Financial Picture: Helps businesses track financial activities systematically.
Used for Financial Reporting: Required by international accounting standards (GAAP & IFRS).
Example:
If a company buys equipment for $5,000 in cash, the journal entry would be:

Debit (Dr) Equipment $5,000 (increase in assets).
Credit (Cr) Cash $5,000 (decrease in assets).

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