Double entry accounting recognizes that every transaction must affect at least two different accounts. It is a mathematical consequence of the more primal accounting identity assets=liabilities+owners' equity, or equivalently investment=claims against investments. One of its more attractive qualities (at least to accountants) is that it is easy to audit and track errors. I have never heard of single entry accounting, so I don't completely know how to answer the question as it is posed.
As an aside, I have read that the use of debits and credits in the double entry system was a response to the teaching of the Roman Catholic Church in medieval times that negative numbers were instruments of the devil. With debits and credits, a negative number is never used in double entry accounting. (the double entry system was invented by a 14th century Italien monk and mathematician). At 01:13 PM 6/27/2002 -0400, you wrote: >What exactly is the advantage of double-entry accounting over >single-entry accounting? >-- > Prof. Bryan Caplan > Department of Economics George Mason University > http://www.bcaplan.com [EMAIL PROTECTED] > > "He wrote a letter, but did not post it because he felt that no one > would have understood what he wanted to say, and besides it was not > necessary that anyone but himself should understand it." > Leo Tolstoy, *The Cossacks* ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Kevin D. Sachs, Ph.D. Assistant Professor phone: 513.556.7198 University of Cincinnati fax: 513.556.4891 Department of Accounting/IS email: [EMAIL PROTECTED] 302 Lindner Hall, P.O.Box 210211 Cincinnati, OH 45221-0211 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
