Select the option which correctly completes the following sentence relating to the principles of double entry bookkeeping. There is only one correct response. In the accounting equation Assets = Liabilities + Equity:

Select one:

if an asset account increases (by a debit), then one must also either decrease (credit) another asset account or increase (credit) a liability or equity account

if an asset account decreases (by a debit), then one must also either decrease (credit) another asset account or increase (credit) a liability or equity account

if an asset account decreases (by a debit), then one must also either increase (credit) another asset account or decrease (credit) a liability or equity account

Read the following statements and select the correct accounting doctrine/convention from the list above according the image:

Once an accounting method is adopted it should not be changed unless there is good reason to do so

Financial reports are prepared in regular periods to allow the comparability.

Transcribed Image Text:

Choose... Accounting entity convention Consistency convention Going concern convention Recognition of law Historical cost convention Doctrine of Materiality Doctrine of Disclosure Accounting period convention Doctrine of Conservatism Monetary convention Choose... Accounting entity convention Consistency convention Going concern convention Recognition of law Historical cost convention Doctrine of Materiality Doctrine of Disclosure Accounting period convention Doctrine of Conservatism Monetary convention

Answer rating: 100% (QA)

Answer 1 Correct option is 1 if an asset account increases by a debit then one must also either decr... View the full answer