The correct answer is B. Dual Aspect Concept.
The dual aspect concept is a fundamental accounting concept that states that every transaction has two aspects, a debit and a credit. This means that for every increase in one account, there must be a corresponding decrease in another account. The dual aspect concept is based on the idea that every transaction affects two or more elements of the financial statements. For example, when a company purchases inventory, the asset account Inventory is increased and the liability account Accounts Payable is increased.
The dual aspect concept is important because it helps to ensure that the financial statements are accurate and complete. By tracking both the increases and decreases in each account, accountants can identify any errors or omissions in the financial statements.
The other options are not correct because they do not state that every debit should have equal and corresponding credit.
- The matching concept states that expenses should be matched with the revenues they generate.
- The accrual concept states that revenues and expenses should be recorded in the period in which they are earned or incurred, regardless of when cash is received or paid.
- The business entity concept states that a business is a separate entity from its owners.
- The realization concept states that revenue should not be recognized until it is realized or realizable.