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

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

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

A non-exchange business transaction does not involve changes in quantifiable monetary values.Select 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.

. All but the smallest of businesses record transactions at the time a purchase or saletakes place irrespective of payment or receipt of cash. This also gives rise to AccountsPayable and Accounts Receivable. Distinguish between the cash and accrual basis ofaccounting.