Joe Teen has a simple business: he does odd jobs for his neighbors for $10 an hour. Joe hopes to become an accountant and would like to use a double-entry bookkeeping system for his business. What is the smallest number of accounts he needs to create?

Question

Quizplus · Accepted Answer

In a double-entry bookkeeping system, each transaction affects at least two accounts (to maintain the accounting equation), so the minimum number of accounts Joe needs is two.

Joe Teen Has a Simple Business: He Does Odd Jobs