Every transaction requires a corresponding debit and credit entry. System ensures total debits equal total credits in general ledger. Transactions affect at least two accounts with equal debits and credits. System helps detect financial errors and fraud
Prudence is the ability to govern oneself through reason. Derives from Latin "prudentia" meaning "seeing ahead, sagacity". Associated with wisdom, insight, and knowledge
Overhead means something located or operating above the head. Word originates from late Middle English (1425-75). Can be used as both adjective and adverb
Debits increase assets and decrease liabilities, while credits decrease them. Double-entry accounting records every transaction in at least two accounts. Debits are recorded on the left, credits on the right side of the ledger
Write-down reduces asset value while maintaining some remaining value. Write-off eliminates asset value completely, making it worthless. Write-offs are typically one-time events, while write-downs can be cumulative
Site offers intermediate to advanced accounting practice questions. Exercises include basic accounting equation, journal entries, and financial statements. Time limits and difficulty levels are clearly stated at each exercise page. Practice recommended with timing to avoid exam-like conditions