Practice question · Multiple choice
Double-entry emerged among Venetian merchants in the 1300s and outlived every accounting technology since. What property explains its survival?
Hints
- Ask what the second entry adds, given the first already recorded the event.
- The extra work buys something. What?
Show the answer
B. Redundancy that self-checks: most errors break the constraint
Why
The duplicate entry is deliberate redundancy, and redundancy is what turns a ledger into an error-detecting code, the same principle as a checksum. It costs twice the writing and catches most mistakes automatically, which is why Pacioli's description of it in 1494 still describes modern systems.
Practise Double-Entry Bookkeeping
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More questions on Double-Entry Bookkeeping
- A trainee books a purchase: Dr Cash 300, Cr Inventory 300. What went wrong?
- Which statements about double-entry bookkeeping are true?
- Order the steps of recording a credit sale (the customer pays later).
- Crediting an asset account decreases it, while crediting a liability increases it. Why do the two behave in…
- A cash account starts at 500, receives debits of 300 and credits of 120. Estimate the closing balance.
- Which accounts grow with a debit, and which with a credit?
- Match each double-entry term to its meaning.