Question

When a machinery is purchased for cash, the cash balance is reduced and to that extent, the amount of machinery as an asset is recorded. This is done to follow which of the following accounting principles:

• A. Dual Aspect Principle
• B. Materiality Principle
• C. Timeliness Principle
• D. Consistency Principle

Answer 1

The correct option is A

Dual Aspect Principle

The dual aspect concept states that every business transaction requires recordation in two different accounts.