The duality of effects can best be described as follows:a. When a transaction is recorded in the accounting system, at least two effects on the basic accounting equation will result.b. When an exchange takes place between two parties,both parties must record the transaction.c. When a transaction is recorded, both the balance sheetand the income statement must be impacted.d. When a transaction is recorded, one account willalways increase and one account will always decrease.

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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