Entropy, Double Entry Accounting and Quantum Entanglement

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The double entry accounting system is over five centuries old. While commerce and technology have changed in dramatic and unforeseen ways, the double entry system continues to survive and even thrive. The reasons for its durability and longevity remain something of a mystery. Entropy, Double Entry Accounting and Quantum Entanglement speculates on the reasons for double entry accounting’s apparent usefulness. The monograph is organized as follows. Section 2 establishes the three-way classical equivalence. Section 3 establishes the three-way quantum equivalence. The classical equivalence is a special case of the quantum equivalence. Section 4 defines the observability gap and runs thought experiments to show that entanglement can reduce the observability gap. The authors interpret entanglement in the quantum world using the Bell Theorem and conjecture that double entry accounting is a mechanism for entanglement in the business world. Section 5 provides a conclusion and proofs are provided in the appendix.