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What is the #1 rule in accounting? Baltimore
- Location: Baltimore, Maryland, United States
The #1 rule in accounting is the principle of double-entry bookkeeping. This rule states that for every financial transaction, there must be at least two equal and opposite entries in the accounting records: a debit in one account and a credit in another. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced at all times.
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