Each financial transaction in a business has what is called a dual effect on accounting equation. Explain this term and give an example of financial transaction and how it affects each account.

Hello Dr Merkel and classmates,

The term dual effects means that every transaction it has two effects, one on assets and another on liabilities and /or stockholder's equity. This is caused by an economic event that will cause an increase (credit) or decrease (Debit) on both sides (Kimmel & Weygandt, n.d.). This is important because the accounting equation must always be balance. This equation is used to make sure you are not only managing your finances well but to ensure that your records/bookkeeping are accurate. An example of this would be.

P. Kimmel & J Weygandt. (n.d.) Survey of Accounting Second Edition. The Accounting Information System LO 2: Using the Accounting Equation to Analyze Transactions (pp.9. Wiley.com https;//read.wiley.com/book/9781119591344/page/8/section/sec2-