For the basic accounting equation to stay in balance, each transaction recorded must
A)affect two or fewer accounts.
B)affect two or more accounts.
C)always affect exactly two accounts.
D)affect the same number of asset and liability accounts.

Question

Quizplus · Accepted Answer

The basic accounting equation (Assets = Liabilities + Equity) stays in balance because every transaction affects at least two accounts, ensuring that the equation remains equal. This principle is known as double-entry accounting.

For the Basic Accounting Equation to Stay in Balance, Each