Final answer:
Debits are added to the left and credits to the right in a ledger. Attention must be paid to the correct significant digit when rounding in addition or subtraction. This is important for accurately preparing financial documents and trade balances.
Step-by-step explanation:
In accounting, debits are entered on the left side and credits on the right side of a ledger. When working with whole numbers in addition and subtraction, it is important to pay attention to the last significant digit to the left of the decimal point for proper rounding. For instance, subtracting 362 m from 78,500 m gives you a precise result of 78,138 m, but because the initial number's precision is to the hundreds place, the rounded result should be 78,100 m.
This rounding consideration applies to financial formulas such as the savings investment formula as well, where rounding may affect the recorded trade deficit or surplus. In terms of international trade, the trade balance, which includes the difference between exports and imports, and unilateral transfers, all influence the current account balance.