Business I / Double-Entry Bookkeeping
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
  1. Ask what the second entry adds, given the first already recorded the event.
  2. 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.

Read the lesson: Double-Entry Bookkeeping →

Practise Double-Entry Bookkeeping

The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.

More questions on Double-Entry Bookkeeping