A business transaction can have dual effect on a single accounting element or value.Select one:TrueFalse

A business transaction should always affect at least two accounting elements or values.Select one:TrueFalse

Double-entry accounting means that every transaction affects and is recorded in at least two accounts.  True False

What is Dual aspect convention?Question 2Answera.underlying basis for double entry accounting systemb.assumption that the company will continue its operationsc.both assets and liabilities are reported on a company’s balance sheet at their original costd.ensures that financial statements are not overly optimistice.Income should be properly "matched" with the expenses of a given accounting period

A business transaction to be recognized in accounting should involve exchange of values and quantifiable in terms of moneySelect one:TrueFalse

The following statements relate to the business transactions topic. Choose all of the statements that are false:Question 3AnswerAll accrual accounting systems, no matter how simple or complex, follow the same basic recording rules.A numerical error in recording an item in the accounting system will become evident when the balance sheet does not balance.Generally speaking, business events are important and relevant for the entity but often lack the criteria to enable recording.Under ‘double entry’ accounting, all transactions will only affect a maximum of two elements in a business.An owner-related transaction that involves withdrawing inventory for personal use would affect the statement of cash flows.