Question Mode

Multiple Choice Question

Which of the following statements below lists the rules of entering transactions into the accounting equation?

Multiple choice question.

The accounting equation can be out of balance only when payment will be received at a future date.

Transactions entered into the accounting equation must involve cash and an equity account.

The accounting equation must always remain in balance so that assets always equal the sum of liabilities and equity.

An asset account and a liability account are always affected.