Which of the following statements are true about the accounting transactions? Se

Question

Which of the following statements are true about the accounting transactions? Select all that apply

Transactions occur when a source document (e.g., a billing) arrives, a time-based obligation (e.g., payroll payment deadline) occurs, or when closing accounts to prepare financial reports.

A transaction will always debit one account and credit another account.

When journalizing a transaction, the following equation must be maintained: Assets + Net Worth = Revenues + Liabilities + Expenses.

None of the above.

Transactions occur when a source document (e.g., a billing) arrives, a time-based obligation (e.g., payroll payment deadline) occurs, or when closing accounts to prepare financial reports.

A transaction will always debit one account and credit another account.

When journalizing a transaction, the following equation must be maintained: Assets + Net Worth = Revenues + Liabilities + Expenses.

None of the above.

Explanation / Answer

Transaction occurs when we give up an asset in exchange of another asset. So option - a is incorrect

accounting equations is NET WORTH = TOTAL ASSETS - OUTSIDER LIABILITIES . So given equation in option - c is incorrect

Every transaction involves two parties. To ourself we cannot make a transaction. So, A transaction will always debit one account and credit one account . So option - B is correct

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.