Question

Which of the following equation is related with Dual Aspect Concept?

• A. Total Assets = Total Liabilities
• B. Total Assets = Capital + Outsider`s Liabilities
• C. Capital= Total Assets - Outsider`s Liabilities
• D. All of the above

Answer 1

The correct option is D

All of the above

The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:
Assets = Capital + Liabilities