The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognized as ____ concept.
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Correct Answer: Option D
Explanation:
The duality concept is a core principle of accounting that forms the basis of the double-entry system.
It states that every financial transaction has two equal and opposite effects:
- A debit entry in one account
- A corresponding credit entry in another
This ensures the accounting equation remains balanced:
- Assets = Liabilities + Owner’s Equity
For example, if a business takes a loan:
- Cash (an asset) increases — debit
- Loan payable (a liability) increases — credit
The duality concept is a core principle of accounting that forms the basis of the double-entry system.
It states that every financial transaction has two equal and opposite effects:
- A debit entry in one account
- A corresponding credit entry in another
This ensures the accounting equation remains balanced:
- Assets = Liabilities + Owner’s Equity
For example, if a business takes a loan:
- Cash (an asset) increases — debit
- Loan payable (a liability) increases — credit