Every business transaction affects at least ________ accounts?
Correct answer: B. Two
- A. One
- B. Two
- C. Three
- D. Infinite
Explanation
The double-entry system requires every transaction to have equal debit and credit effects. Therefore, at least two accounts are affected, although more may be involved.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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