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      Question

      The basic accounting equation, Assets = Liabilities +

      Capital, is the foundation of which principle?
      A Going Concern Correct Answer Incorrect Answer
      B Dual Aspect Correct Answer Incorrect Answer
      C Money Measurement Correct Answer Incorrect Answer
      D Consistency Correct Answer Incorrect Answer

      Solution

      The Dual Aspect principle states that every transaction has two equal and opposite effects, which is mathematically expressed as Assets = Liabilities + Capital.

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