Question

Is it true that a transaction always affects at least two elements (assets, liabilities, or owner's equity) of the accounting equation?

Answer 1

No, it is not true that a transaction does not necessarily have to affect at least two elements of the accounting equation. The elements in the accounting equation are assets, liabilities, or owner's equity and the accounting equation is as follows: Assets = Liabilities + Owner's Equity. Owner's Equity means right of the owner to access the assets.