Consider the following statements: I. For Income Statement accounts, evidence is considered to Be more timely if it involves selecting amounts throughout the period. II. For balance sheet accounts, evidence is considered to be more timely if it involves selecting transactions throughout the period. a. I is true; II is true. b. I is true; II is false. c. I is false; II is true. d. I is false; II is false

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is