109k views
0 votes
A key rule to keep in mind when making journal entries is that____________

2 Answers

5 votes
Debits and credits should always be equal in the end
User Rayshawn
by
8.3k points
5 votes

Final answer:

When making journal entries, one must adhere to the double-entry bookkeeping system, ensure that entries are detailed and error-free, and consider the context such as the supply and demand in the financial market.

Step-by-step explanation:

A key rule to keep in mind when making journal entries is that each entry must have a corresponding and equal debit and credit, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced. This is often referred to as the double-entry bookkeeping system. It is crucial that entries are concise yet sufficient to fully address the components of the journal, maintaining a high standard of writing quality free of grammatical errors or mistakes. For students, the process of creating journal entries often includes answering self-reflection questions for learning, tracking ideas and information for research, and considering the supply and demand side of the financial capital market before making calculations.

User Christian Klemm
by
8.1k points