MCQ
Following are the steps involved in developing an accounting equation (in particular order). Arrange the steps in correct sequence.
i. Find out the effect (in terms of increase or decrease) of a transaction on assets,capitals or liabilities.
ii. Show the effect on appropriate side of an equation and ensure that the total of right hand side is equal to the total of left hand side.
iii. Ascertain the variables (i.e. assets, liabilities or capital) involved in a transaction.
i. Find out the effect (in terms of increase or decrease) of a transaction on assets,capitals or liabilities.
ii. Show the effect on appropriate side of an equation and ensure that the total of right hand side is equal to the total of left hand side.
iii. Ascertain the variables (i.e. assets, liabilities or capital) involved in a transaction.
- ✓(iii), (i), (ii)
- B(iii), (ii), (i)
- C(ii), (iii), (i)
- D(i), (ii). (iii)