Which of the following is false?a. A company can have a transaction that affects only the left side of thefundamental accounting equation.b. In each accounting transaction, total debits to assets must be equaltotal credits to liabilities.c. The fundamental accounting equation will always balance after eachcorrectly recorded accounting transaction.d. All of these choices are true.

The correct answer is:b. In each accounting transaction, total debits to assets must be equal to…

Answered: Which of the following is false? a. A…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 13MC: Which of the following does not accurately represent the accounting equation? A. B. C. D.

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Similar questions

Which of the following does not accurately represent the accounting equation? A. B. C. D.
The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation.
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
Generally accepted accounting principles require that companies use the _____ of accounting. a.deferral basis b.account basis c.cash basis d.accrual basis
What is the impact on the accounting equation when a payment of accountable payable is made? what is the impact on accounting equation when an account receivable is collected? what is the impact on the accounting equation when a sell occurs? what is the impact on the accounting equation when stock is issued, in exchange for assets? which of the following accounts is increased by a debit? which of the following camp do not increase with a debit entry? which of the following pairs increase with credit entries? which of the following pairs of accounts are impacted the same with debits and credits? which of the following count normally have a debit balance? what type of account is prepaid insurance?
Define the measurement principle. Select one: a. Requirement that accounting records should all be reported in a single currency. O b. Assumption that a business will continue to operate into the foreseeable future. O c. Accounting for purchases must be at their original cost. d. Transactions should be recorded on the basis of objective evidence where different people looking at the evidence would all arrive at the same conclusion.
The duality of effects can best be described as follows:a. When a transaction is recorded in the accounting system, at least two effects on the basic accounting equation will result.b. When an exchange takes place between two parties,both parties must record the transaction.c. When a transaction is recorded, both the balance sheetand the income statement must be impacted.d. When a transaction is recorded, one account willalways increase and one account will always decrease.
Simply explain the recording process and the accounting equation to someone who has no accounting experience. Give your opinion on the elements or areas that might cause the most confusion or be the most difficult to grasp. Accounting equation: The equation between assets, liabilities, and owner's equity of a company is referred to as the accounting equation. According to this equation, assets must be equal to the sum of liabilities and owner's equity.
Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. h. Nixon Corp records and maintains their books at cost and/or current value, not at a liquidated value. Violation: (Yes/No) Applicable Assumption/Principle: i. Wages of $4,000 related to the last two days of July, were recorded as expense in July even though they were paid in August. Violation: (Yes/No) Applicable…
Which of the following is a major challenge facing the accounting profession? O A. Accounting for hard assets O B. Backward-looking information O. Financial measurements O D. Timeliness
The income statement represents the basic accounting equation. True or false?
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