Unit 1: Introduction to Business Accounting

Every transaction affects two accounts, ensuring balance. (correct)

Individual accounts are maintained without any links.

Only revenues and expenses are recorded.

Transactions can be recorded in any manner.

Liabilities are always recorded after owner's equity.

Assets should be recorded at current market value.

Expenses increase the owner's equity.

Debits must equal credits for every transaction. (correct)

To prepare financial statements directly.

To summarize all transactions by account. (correct)

To record all transactions in chronological order.

To track cash inflows and outflows only.

<p>It lists all accounts and their balances for verification.</p> Signup and view all the answers

<p>Revenue should be recognized when earned, not received.</p> Signup and view all the answers