Question

a transaction means an activity that ____________
○ changes the balance in the accounting equation
○ brings a new balance in the accounting equation
○ does not change the balance in the accounting equation
○ brings the balance to zero in the accounting equation

Explanation:

In accounting, a transaction is an economic event that has a monetary impact and changes the balance in the accounting equation (Assets = Liabilities + Equity). For example, buying an asset for cash changes the composition of assets (cash decreases, other asset increases) and thus the balance in the accounting - equation components.

Answer:

A. changes the balance in the accounting equation