The Accounting Convention That States That Every Transaction Has at Least

question 40

Multiple Choice

The accounting convention that states that every transaction has at least two effects on the accounting equation, so that after the transaction is processed, the equation remains in balance is the:

• A)going concern/continuity convention.
• B)objectivity/reliability convention.
• C)conservatism/prudence convention.
• D)dual aspect convention.

---

Definitions:

Common Measures Bias

A bias that occurs when survey respondents use common scales to make their answers seem more socially acceptable or favorable.

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby conclusions about other people and situations may be drawn in an illogical fashion.

Performance of Divisions

Evaluation of each segment or department within a company based on their financial results, productivity, and efficiency.

Cognitive Bias

An organized tendency to deviate from normal or logical thinking in making judgments, leading to conclusions about people and situations that are drawn illogically.