Since each transaction has a dual effect on the accounting equation, how must each transaction be recorded? A : at the beginning and end of the month B : as a revenue first and then as an expense C : in at least two different accounts D : as an asset first and then as a liability

Question

Demarcus Baird

Business

14 December, 18:36

Since each transaction has a dual effect on the accounting equation, how must each transaction be recorded? A : at the beginning and end of the month B : as a revenue first and then as an expense C : in at least two different accounts D : as an asset first and then as a liability

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Answers (1)

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Sherlyn Campos · Answer 1

C : in at least two different accounts

Explanation:

As there is an effect of any transaction on at-least 2 accounts that is each general transaction has an entry with two accounts involved.

Thus, whenever an accounting entry is to be done, it will involve 2 accounts, though both the accounts might be of asset, or one of asset and one of liability.

In each case, the entry will keep the accounting equation balanced.

Therefore, correct option is

Statement C