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#cfa-level-1 #reading-23-financial-reporting-mechanics
An alternative system that underlies most manual and electronic accounting systems uses debits and credits.
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APPENDIX 23: A DEBIT/CREDIT ACCOUNTING SYSTEM
The main section of this reading presented a basic accounting system represented as a spreadsheet. An alternative system that underlies most manual and electronic accounting systems uses debits and credits. Both a spreadsheet and a debit/credit system are based on the basic accounting equation: Assets = Liabilities + Owners’ equity Early generations of accountants


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