19, Connecting the Dots, Accounting Graphs for Double and Quadruple-Entry Bookkeeping

Open Risk White Paper 19: Connecting the Dots: Accounting Graphs for Double and Quadruple-Entry Bookkeeping

We develop the concept of an accounting graph as an intuitive and flexible tool that can faithfully represent widely used accounting concepts. More specifically, a weighted directed multigraph representation is applied to model standard double-entry bookkeeping (DEB) of individual accounting entities but extended to also provide a consistent accounting graph for larger economic networks that feature multiple transacting entities (so-called quadruple-entry accounting). We illustrate the concepts with stylized accounting examples. Such accounting graphs are promising both as educational tools and towards the application of computational tools on accounting data.

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Citation

@ARTICLE{OpenRiskWhitePaper19,
 author = {P. Papadopoulos},
 year = {2025},
 note = {\href{https://www.openriskmanagement.com/wp-content/uploads/2025/11/OpenRiskWP19_111125.pdf}{Download URL}},
 title = {{Open Risk WP19: Connecting the Dots: Accounting Graphs for Double and Quadruple-Entry Bookkeeping}},
 journal = {Open Risk White Papers}
}