For each transaction recorded in an accounting system,the basic equation that must be maintained at all times is:

Question

Quizplus · Accepted Answer

The basic accounting equation is Assets = Liabilities + Stockholders' Equity, which must be maintained for each transaction. This means that any increase in assets must be balanced by either an increase in liabilities or an increase in stockholders' equity, and any decrease in assets must be balanced by either a decrease in liabilities or a decrease in stockholders' equity. This equation ensures that the accounting system remains in balance and that financial statements accurately reflect the company's financial position.

For Each Transaction Recorded in an Accounting System,the Basic Equation