The Rules for Recording Accounting Transactions Include All of the Following

question 151

Multiple Choice

The rules for recording accounting transactions include all of the following EXCEPT:

• A) Every transaction's net amount on the left side of the equation must equal the net amount on the right side of the equation.
• B) Total assets must always equal total liabilities plus total equity.
• C) Every transaction affects the financial statements of the business.
• D) Both sides of the accounting equation must be affected.

---

Definitions:

Valid Delegation

The legal transfer of authority from one party to another, where the delegating party retains the responsibility for the task.

Delegator

A person or entity that assigns tasks or authority to another.

Delegatee

An individual or organization that has been delegated authority or tasks by another, known as the delegator.

Obligee

A person to whom another is bound by a promise or other obligation; a promisee.