The fourth logical step to determine the result of a transaction is to classify the affected accounts as assets, liabilities or equity.Select one:TrueFalse

Analyzing the Statement

The statement is asking whether the fourth step in determining the result of a transaction involves classifying the affected accounts as either assets, liabilities, or equity.

Relevant Concepts

In accounting, when a transaction occurs, it is essential to analyze which accounts are affected and how they change. This is part of the double-entry accounting system where every transaction affects at least two accounts. The classification into assets, liabilities, or equity is crucial to understand the nature of the accounts being affected.

Analysis

1. Understanding Transaction Analysis: The process typically involves identifying what accounts are involved in the transaction.
2. Classifying Accounts: After identifying the accounts, they must be classified into one of the three categories: assets (resources owned), liabilities (obligations owed), or equity (owner's interest).
3. Importance of Classification: This classification helps in maintaining the balance in the accounting equation: Assets = Liabilities + Equity.

Final Verification

Since the classification of accounts is indeed an essential step in understanding the impact of a transaction on a business's financials, the statement can be confirmed as True.

Final Answer

True