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Why does the Simplify debts algorithm focus on net balances rather than individual transactions?

hard📝 Conceptual Q10 of 15
LLD - Design — Splitwise (Expense Sharing)
Why does the Simplify debts algorithm focus on net balances rather than individual transactions?
ABecause net balances summarize overall owed or owed-to amounts, enabling fewer transactions
BBecause individual transactions are always equal and do not affect simplification
CBecause net balances ignore who paid what, simplifying calculations incorrectly
DBecause individual transactions are too complex to store in memory
Step-by-Step Solution
Solution:
  1. Step 1: Understand net balance role

    Net balances show the final amount each person owes or should receive after all transactions.
  2. Step 2: Explain why net balances simplify debts

    Using net balances reduces the number of transactions by summarizing debts.
  3. Final Answer:

    Because net balances summarize overall owed or owed-to amounts, enabling fewer transactions -> Option A
  4. Quick Check:

    Net balances = Summary for fewer transactions [OK]
Quick Trick: Net balances summarize debts to reduce transaction count [OK]
Common Mistakes:
  • Thinking individual transactions are irrelevant
  • Assuming net balances ignore payment details
  • Believing memory limits drive the choice

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