A: The Accounting Equation is Assets = Liabilities + Equity. R: This equation is based on the Dual Aspect Concept. Choose the correct option. MCQ with Answer and Explanation
A: The Accounting Equation is Assets = Liabilities + Equity. R: This equation is based on the Dual Aspect Concept. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. Both A and R are true and R is the correct explanation of A
C. A is true but R is false
D. A is false but R is true
Answer: Option B
Solution (By JKSSB Mock Tests)
The accounting equation mathematically represents the balance sheet. It is directly derived from the Dual Aspect Concept, which states that every transaction has two equal and opposite effects. R correctly explains the basis of A.
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