The Duality (Or Duality of Effects)concept States That

question 26

Multiple Choice

The duality (or duality of effects) concept states that

• A)both the income statement and balance sheet are impacted by every transaction.
• B)every transaction has an impact on assets and stockholders' equity.
• C)there are two entities involved in every transaction.
• D)every transaction has at least two effects on the accounting equation.

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Definitions:

Posterior Probability

The probability of assigning events or hypotheses after taking into consideration relevant evidence or background information.

Nominal Data

Represents data that can be categorized but not ranked or ordered numerically.

Interval Data

A type of numerical data that has meaningful differences between values and a true zero point.

Ordinal Data

Describes a type of data which is categorized into ordered but not necessarily equally spaced categories.