Chapter 2, Problem 5RQ

To determine

Accounting Equation:

Accounting equation is the mathematical representation of the relationship among the assets, liabilities, and stockholder’s equity at any given point of time. The components of the accounting equation include the assets, liabilities and stockholder’s Equity. In the accounting equation, the assets, which are placed on the left side of the equation, and the liabilities, and stockholder’s equity which are placed on the right side, must always balance. The accounting equation is as follows:

$\boxed{\text{Assets = Liabilities + Stockholder's Equity}}$

To Explain: Whether Person J is correct on his perception that under dual effect, for all transactions, one account will increase and one account will decrease.