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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
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.
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 record in the accounting equation?
Transaction
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
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.
How has technology had an effect on accounting?
Accuracy EfficiencyAccountabilitySolid Transaction audits
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
Can a business enter into a transaction in which only the left side of a basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
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.
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"
Does the accounting equation have to remain in balance after the changes caused by a transaction have been recorded?
Yes, the accounting equation must remain in balance after recording any transaction. The equation, which states that Assets = Liabilities + Equity, ensures that every financial transaction affects at least two accounts in a way that maintains this balance. For example, if a company takes out a loan, its assets (cash) and liabilities (loan payable) both increase, keeping the equation intact. Maintaining this balance is fundamental to accurate financial reporting and the integrity of the accounting system.
