'Every Accounting Transaction Has at Least Two Effects on the Accounting

question 13

Essay

'Every accounting transaction has at least two effects on the accounting equation.'
In light of this statement,answer the following questions:
a Explain what is meant by the term 'accounting equation'.
b Explain why the statement is valid.Illustrate your explanation with at least 2 examples.

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Definitions:

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing financial accounting and reporting standards in the United States.

Pay-As-You-Go

A financing method where expenditures are not financed by borrowing but from current revenues such as taxes.

Cafeteria-Style

A flexible benefits plan that allows employees to choose among a variety of offerings to create a benefits package tailored to their needs.