Asked by Michelle Marquez on May 26, 2024

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The dual effects concept implies that every transaction has at least two effects on the accounting equation.

Dual Effects Concept

The principle that every transaction has at least two effects on the financial statements - one that increases a category and another that decreases another category, maintaining the balance.

Transaction

An event or activity that impacts the financial position of a company, typically involving the exchange of goods, services, or money.

  • Understanding the basic concepts of accounting, including the going concern assumption, double-entry system, and monetary unit principle.
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Namita PatelMay 29, 2024
Final Answer :
True
Explanation :
Every transaction in accounting has at least two effects on the accounting equation - one effect on the left side (assets, expenses, or dividends) and one effect on the right side (liabilities, equity, or revenue). This is known as the dual effects concept or duality principle.