Transactions that impact only assets do not require the accounting equation to stay in balance.

Name: Transactions that impact only assets do not require the accounting equation to stay in balance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Even if only assets are involved, the accounting equation still needs to stay in balance. The equation is Assets = Liabilities + Equity, and any transaction that affects assets must also affect either liabilities or equity in order for the equation to remain balanced.

Transactions That Impact Only Assets Do Not Require the Accounting