Principle of double-entry bookkeeping
Accounting mechanisms

The company produces goods and services by combining a number of resources (purchased raw materials, use of personnel, borrowed capital, etc.). The company will have to pay for the resources it uses, but, in return, it will be remunerated for the goods and services it renders.

The company will therefore be crossed by flows (i.e. movements and transactions) that can be classified into two main categories:

• real flows (goods and...