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Part $1$

Will all transactions have a dual effect on the accounting$$ equation? Explain.

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Part $1$

A$.$

Not all transactions will have a dual effect on the accounting equation. An increase in assets does not have any effect on the accounting equation.

B$.$

All transactions will have a dual effect on the accounting$$ equation, which will result in debits equaling credits in the equation. If an asset$$ increases, there must be one of the following account$$ changes: a decrease in another$$ asset, an increase in a specific$$ liability, or an increase in$$ stockholders' equity.

C$.$

Not all transactions will have a dual effect on the accounting equation. If$$ stockholders' equity$$ increases, it has no effect on the accounting equation.

D$.$

All transactions will have a dual effect on the accounting$$ equation, which will result in assets equaling liabilities in the equation. If an asset$$ increases, then there must be a decrease in a specific liability.