Each transaction must __________ in order for the basic accounting equation to stay in balance. Select answer from the options below affect two or more accounts affect two or fewer accounts always affect exactly two accounts affect the same number of asset and liability accounts
Each transaction must __________ in order for the basic accounting equation to stay in balance. Select answer from the options below affect two or more accounts affect two or fewer accounts always affect exactly two accounts affect the same number of asset and liability accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Each transaction must __________ in order for the basic
Select answer from the options below
affect two or more accounts
affect two or fewer accounts
always affect exactly two accounts
affect the same number of asset and liability accounts
Expert Solution
Step 1: Introducing Accounting Equation
ACCOUNTING EQUATION
Accounting Equation is a Financial Accounting Technique which represents the relationship between the assets, liabilities, and owner's equity of an Organization.
The accounting equation states that the Total Assets of an Organisation are Equal to the Sum of Total Liabilities & Shareholders Equity.
The basic accounting equation is :—
ASSETS = LIABILITIES + SHAREHOLDERS EQUITY
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