Question

Select correct statement about dual aspect. A. This shows the debit balance of Accounting transaction B. This shows the credit balance of Accounting transaction C. This principle is the foundation of Single Entry System of accounting D. This principle is the foundation of Double Entry System of accounting

Answer 1

Answer:

D ) The principle is the foundation of Double entry system of Accounting.

This statement is correct About Dual Aspect Concept. Other statements are not about dual aspect Concept.

Dual Aspect Concept :

According to this Concept every transaction has a dual effect receiving aspect and giving aspect.

Accounting Equation is developed with the help of dual aspect concept.

Assets = Liabilities + Capital

Accounting Concepts

Accounting Concepts are the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting. The basic Accounting concepts are ;

• Business Entity Concept

• Money measurement Concept

• Going Concern Concept

• Accounting Period Concept

• Cost Concept

• Dual Aspect Concept

• Revenue Recognition Concept

• Matching Concept

• Full Disclosure Concept

• Consistency Concept

• Conservation Concept

• Materiality Concept

• Objectivity Concept