Posted by queen on .
The general manager of a business encounters many different types of business transactions. Provide an example of a transaction that would describe the effect on the accounting equation. Each situation is independent of the other situations.
a. The transaction would increase an asset account and increase a liability account.
b. The transaction would decrease an asset account and decrease the owner’s equity account.
c. The transaction would increase an asset account and increase owner’s equity account.
d. The transaction would decrease an asset account and decrease a liability account.
e. The transaction would increase one asset account and decrease another asset account.
f. The transaction would decrease one liability account and increase another liability account.
What ideas do you have?
IWAS THINKING NO OVERDRAFTS, INSUFFIENT FUNDS, MORE MONEY IN THE ACCOUNTS,
Which of these scenarios meets the criteria in your questions?
that is what ineeded help with i was not sure where to put my answers
This site may help you sort it out.
(Broken Link Removed)
A. If you would buy a machine and had to pay payments on it that would increase the asset and liability accounts.
B. If you had to use an asset for an expense it would decrease both asset and owners equity account.
C. If you were to sell a property that you owned it would increase both asset and owners equity.
D. Since assets=liability + owners equity if you took the liability out of the equation then it would decrease both.