The Balance Sheet Equation Maintains Equality by Reporting the Financial

question 79

True/False

The balance sheet equation maintains equality by reporting the financial statement effects of each event and transaction in a dual manner, or what are termed the dual effects of transactions.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to verify that the total debits equal total credits.

Compound Journal Entry

A compound journal entry is an accounting entry which involves more than two accounts, recording multiple debits and/or credits in a single transaction.

Affects

Influences or changes caused by one factor on another within a business or system.

Accounts

Records within financial accounting that are used to keep track of increases or decreases in specific financial components, like assets, liabilities, equity, revenue, and expenses.