Multiple choice

Explain dual aspect concept.

  1. It has two fold effect.

  2. Each transaction is recorded at two places.

  3. Atleast two accounts are involved in recording a transaction.

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The dual aspect concept is the foundation of double-entry bookkeeping, stating that every transaction has a two-fold effect. This means at least two accounts are involved, and the transaction is recorded in two places (as a debit and a credit) to keep the accounting equation in balance.

Keep practicing — related questions