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

Logan Demaray · Accepted Answer

Final Answer : B, Explanation :  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 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.

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Learning Objectives

Learning Objectives

Related questions

For the basic accounting equation to stay in balance, each transaction recorded mustA) 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.

Definitions

Learning Objectives

Learning Objectives

Related questions

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.