Every transaction:
A)increases one account and decreases another account.
B)has at least two effects on the basic accounting equation.
C)affects only balance sheet accounts or only income statement accounts.
D)is analyzed from the standpoint of the business owners.

Question

Quizplus · Accepted Answer

Every transaction has at least two effects on the basic accounting equation (at least one debit and one credit).A transaction can result in two accounts increasing,two accounts decreasing,or one account increasing and one account decreasing.A transaction may affect two balance sheet accounts,two income statement accounts,or one of each.Every transaction is analyzed from the standpoint of the business,not the owners.

Every Transaction