As long as an increase and decrease of the same amount is recorded on one side of the accounting equation, the accounting equation remains in balance.

Question

Quizplus · Accepted Answer

The accounting equation must always remain in balance, which is Assets = Liabilities + Equity. The equation remains in balance as long as any increase or decrease is recorded on both sides of the equation for the same amount. This is also known as the double-entry accounting system, which ensures that for every transaction, the entry to one account is offset by an entry to another account. Therefore, the answer is true.

As Long as an Increase and Decrease of the Same