Golden Rules of Accounting Explained: Master Debit and Credit Rules for Financial Success
Accounting, usually referred to as the language of finance, plays an essential role in tracking financial activities, enabling informed decision-making in terms of financial stability. It is a systematic process of recording, summarizing, reporting and other financial transactions to provide an accurate picture of an organization’s financial health. At the base of accounting lies a set of principles known as the Golden Rules of Accounting. These rules are fundamental elements of accounting, form the backbone of double-entry bookkeeping and other miscellaneous financial activities, and are essential for ensuring consistency, clarity, and correctness in financial records.