The dual effect of transactions means:
A) every transaction affects both assets and either liabilities or owners' equity.
B) every transaction affects either assets or liabilities.
C) every transaction affects both assets and owners' equity.
D) every transaction affects at least two accounts.

Question

Quizplus · Accepted Answer

Every transaction will require at least two changes, but these may be to the same side of the accounting equation, e.g. prepaying insurance will decrease one asset, cash, but increase another asset, prepaid insurance

The Dual Effect of Transactions Means