Question

A business transaction affects ______________.

• A. At least one account
• B. At least two account
• C. Maximum of two accounts
• D. Maximum of three accounts

Answer 1

Answer: (B)

At least two account

All transactions are recorded in the books of accounts on the basis of the dual-aspect concept. Thus, every transaction affects at least two accounts in opposite directions. There can be no transactions in a business that affect only one account or have only one aspect because the double-entry system of accounting is followed while recording the transactions in the books of accounts. For example, if furniture is purchased for cash, the transaction will affect two accounts, i.e. Furniture A/c, as furniture is increased and Cash A/c as cash is decreased.