Question

The "Dual Aspect" explains that every transaction affects at least two items in the basic accounting equation and preserves the equation’s equality. What is the fundamental accounting equation? (2 points)

Answer 1

Assets = Liabilitites + Shareholder's equity

Step-by-step explanation:

The fundamental accounting information is seen above; i.e, Assets = liability + shareholders. This means that an individual's asset is the combination of liability and shareholders equity.

This was the basis of many other accounting equation, such as the double entry.

Cheers