Final answer:
The statement is false because the Accounting Equation, which represents Assets = Liabilities + Owner's Equity, must always remain balanced, and each transaction affects at least two accounts.
Step-by-step explanation:
The statement 'It is possible that only one side of the Accounting Equation may be affected in a transaction' is false. The Accounting Equation is a basic principle in accounting that must always remain in balance. It is represented as Assets = Liabilities + Owner's Equity. Every financial transaction affects at least two accounts and consequently both sides of the equation. For instance, purchasing office supplies for cash decreases the company's cash account (Asset) while at the same time it increases the office supplies account (also an Asset); assets are still balanced. Similarly, if a company takes out a loan, its liabilities increase, but so does its cash balance, which is an asset; again, the equation remains balanced.