Asked by Michelle Marquez on May 26, 2024
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The dual effects concept implies that every transaction has at least two effects on the accounting equation.
Dual Effects Concept
The principle that every transaction has at least two effects on the financial statements - one that increases a category and another that decreases another category, maintaining the balance.
Transaction
An event or activity that impacts the financial position of a company, typically involving the exchange of goods, services, or money.
- Understanding the basic concepts of accounting, including the going concern assumption, double-entry system, and monetary unit principle.
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Learning Objectives
- Understanding the basic concepts of accounting, including the going concern assumption, double-entry system, and monetary unit principle.
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