For an Accounting Equation to Balance, a Transaction Must Affect

question 1

True/False

For an accounting equation to balance, a transaction must affect both the sides of the equation.

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Definitions:

Budget Constraint

A financial limitation that represents the combination of goods and services a consumer can afford with their available income.

Monthly Income

The total income received every month from all sources including salaries, benefits, and investments.

Purchase Bundle

A combination of goods and services that a consumer buys at a given time.

Budget Constraint

Refers to the limitations on the consumption choices of individuals based on their income and the prices of goods and services.