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What must be true about the accounting equations after each transaction?
Hamilton12345
they must be equal on both sides
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∙ 11y ago
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How many entries are needed for each accounting transaction?
There must be always a 'Credit' whenever there is a 'Debit' so there must be 2.
What must be done if a transaction increases the left side of the accounting equation?
Correct the transaction so that the double entry also increases the right hand side of the accounting equation so that the equation (always) balances.
What is dual aspect concept of accounting?
in dual aspect every transaction has two transactions if there is any debit entry then there must be credit entry.
When two asset accounts are changed in a transaction there must be an increase and a decrease?
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
The double-entry system requires that each transaction must be recorded?
in at least two different accounts.
How many entries are needed for each accounting transaction?
There must be always a 'Credit' whenever there is a 'Debit' so there must be 2.
What must be done if a transaction increases the left side of the accounting equation?
Correct the transaction so that the double entry also increases the right hand side of the accounting equation so that the equation (always) balances.
What is dual aspect concept of accounting?
in dual aspect every transaction has two transactions if there is any debit entry then there must be credit entry.
When two asset accounts are changed in a transaction there must be an increase and a decrease?
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
What is automicity problem?
Atomicity means that all transactions must follow "all or nothing" rule. Each transaction is said to be automic. If one part of the transaction fails, the entire transaction fails.
Why accounting is needed in business?
For any business to grow and last, there must be a way to show how it diminishes or how it increases and there is no better way than to keep a track record of each sale/transaction made within the company other than keeping an account of penny that is in or out of the business.
The double-entry system requires that each transaction must be recorded?
in at least two different accounts.
Why must chemical equations must be balanced?
chemical equations must be balanced according to the law of conservation of mass: mass cannot be created or destroyed. In other words: it's impossible to have an unbalanced equation that is correct, so do what your teacher tells you to.
Why does balance sheet balance?
balance sheet get balance due to the accounting principle Dual aspect. In it each and every transaction has debit and credit having equal amount. Debit the gains is equal to the Credit the losses. one of the gain is acquired then, there must be any losses. due to this principle it's getting balance.
What is one way in which accrual accounting can be used in earnings management?
Revenues are recorded when the sale transaction is complete, not when the customer makes payment, but management must then estimate what proportion of those credit sales will not be collected in the future.
How many days must a transaction be placed in a mortgage transaction log?
2 days
Chemical equations must be?
balanced.
