Posted by Tracy on .
For each of the following items give an example of a business transaction that has the described effect on the accounting equation:
increase an asset and increase a liability
increase one asset and decrease another asset
decrease an asset and decrease owners equity
decrease an asset and decrease a liability
increase an asset and increase owners equity
Here are some accounting tutorials:
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increase an asset and increase a liability : Purchased supplies on account. Increases supplies (asset) and increases accounts payable (liability).
increase one asset and decrease another asset: Purchased supplies with cash. Increase supplies (Asset) decrease cash (Asset).
decrease an asset and decrease a liability: Paid for purchases on account with cash. Decrease cash (asset) and decrease accounts payable (liability).
Hope these help