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Can a business enter into a transaction in which only the left side of the basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
What is duality concept?
The concept of duality means that every business transaction will have a dual effect on the accounting equation.
A business paid 9000 to a creditor in payment of an amount owed The effect of the transaction on the accounting equation was to?
increase an asset, increase a liability
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
If a business paid 7000 to a creditor in payment of an amount owed. the effect of the transaction on the accounting equation was to?
When the business pays $7,000 to a creditor, its liabilities decrease by $7,000, reflecting a reduction in the amount owed. Simultaneously, the business's cash or bank account (an asset) decreases by the same amount. This transaction maintains the accounting equation (Assets = Liabilities + Equity) because both sides decrease equally, leaving the overall equation balanced.
Can a business enter into a transaction in which only the left side of the basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
A record in the accounting equation?
Transaction
What is duality concept?
The concept of duality means that every business transaction will have a dual effect on the accounting equation.
How are liabilities affected by debits and credits in accounting?
In accounting, liabilities are affected by debits and credits based on the type of transaction. When a liability increases, it is recorded as a credit, and when a liability decreases, it is recorded as a debit. This helps maintain the balance in the accounting equation.
A business paid 9000 to a creditor in payment of an amount owed The effect of the transaction on the accounting equation was to?
increase an asset, increase a liability
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
Why do debits equal credits?
In double entry accounting system any transaction should be equal for both debit as well as credit side to be recorded otherwise no business transaction can be recorded. This assures the basic accounting equation as well.
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.
2 Explain the process of journalizing the business transactions?
Accounting is a process-oriented task that follows a prescribed series of steps in order to keep track of, and record, the balances of the various accounts.When a business makes a transaction, the effect of that transaction is recorded in the accounting system. According to the fundamental accounting equation, each transaction will affect at least two accounts and the balances in those accounts will change.Accounting is the process of keeping track of those changes and recording and then reporting them.
Effect of transaction in accounting equation?
Every transactions has some impact on asset or liability or on both.
True or false after each transaction the basic accounting equation should remian in balance?
true
What economic events affect The accounting equation?
Economic event is the 'Name of transaction where monetory values are involves"
