PRC-1 · Chapter 1 · Question 20 of 100
In the context of accounting principles, what does the 'Duality' or 'Dual Aspect' concept signify?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Every transaction has two effects that keep the accounting equation in balance.
Explanation
The dual aspect concept is the foundation of double-entry bookkeeping, dictating that every financial transaction has equal and opposite debit and credit effects, ensuring the accounting equation remains balanced.
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