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3 A AFM Basic Accountancy Procedures
What is the fundamental accounting equation that forms the basis of double-entry bookkeeping?
The fundamental accounting equation is Assets = Liabilities + Capital (Owner's Equity), meaning every transaction affects at least two sides of this equation equally.
What is the primary objective of accounting in a banking organisation?
To record, classify, and summarise financial transactions accurately.
What does the term 'debit' signify in double-entry bookkeeping?
Debit refers to the left side of a ledger account; it increases asset and expense accounts and decreases liability, capital, and income accounts.
What is the Double Entry System of bookkeeping?
Every transaction has equal debit and credit entries in two accounts.
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