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

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.

The fourth logical step to determine the result of a transaction is to classify the affected accounts as assets, liabilities or equity.Select one:TrueFalse

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 5AnswerDouble-entry accounting implies that business transactions have a dual effect on the elements of accounting.Both sides of the accounting equation must always be affected for a transaction to occur.Business events may affect a business but generally cannot be recorded.Since owner’s drawings involve the use of personal funds, they are never recorded in the business records.The size of a business may affect the type of accounting system they use.