Every transactions has some impact on asset or liability or on both.
The concept of duality means that every business transaction will have a dual effect on the accounting equation.
increase an asset, increase a liability
decrease in asset and decrease in liability
Correct the transaction so that the double entry also increases the right hand side of the accounting equation so that the equation (always) balances.
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
The concept of duality means that every business transaction will have a dual effect on the accounting equation.
Transaction
increase an asset, increase a liability
decrease in asset and decrease in liability
Correct the transaction so that the double entry also increases the right hand side of the accounting equation so that the equation (always) balances.
Accuracy EfficiencyAccountabilitySolid Transaction audits
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
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
Economic event is the 'Name of transaction where monetory values are involves"
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.