Question

Which statement is correct regarding entering transactions into the accounting equation?

A. one account is credited, then at least one other account must be credited as well.
B. After recording a transaction, the total of the right side of the accounting equation must equal the total of the left side of the accounting equation.
C. If total assets are increased, then liabilities only are increased as well.
D. If one asset account is increased, then another asset account must be decreased in order for the left side of the accounting equation to be balanced.

Answer 1

The correct statement regarding entering transactions into the accounting equation is that after recording a transaction, the total of the right side of the accounting equation must equal the total of the left side of the accounting equation.

Step-by-step explanation:

The correct statement regarding entering transactions into the accounting equation is Option B: After recording a transaction, the total of the right side of the accounting equation must equal the total of the left side of the accounting equation. The accounting equation, which is Assets = Liabilities + Owner's Equity, must always be balanced after every transaction. If the left side of the equation increases, the right side must also increase to maintain the balance.