The accounting convention that states that every transaction has at least two effects on the accounting equation, so that after the transaction is processed, the equation remains in balance is the:
A)going concern/continuity convention.
B)objectivity/reliability convention.
C)conservatism/prudence convention.
D)dual aspect convention.

Question

Quizplus · Accepted Answer

The dual aspect convention, also known as double-entry accounting, states that every transaction has at least two effects on the accounting equation, meaning that debits and credits must always be equal. This convention is fundamental to maintaining accuracy and consistency in financial records.

The Accounting Convention That States That Every Transaction Has at Least