Business Environment and Recording Transactions
posted by candy .
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 owner's equity.
Decrease an asset and decrease a liability.
Increase an asset and increase owner's equity.
Please help me :(
Look up the definitions of asset and liability, and then these questions become very easy.
Business Environment and Recording Transactions -
The general manager of a business encounters many different types of business transactions. Provide an example for each of the following transactions that would describe the effect on the accounting equation. Each situation is independent of the other situations.
1.The transaction would increase an asset account and increase a liability account.
2.The transaction would decrease an asset account and decrease the owner’s equity account.
3.The transaction would increase an asset account and increase the owner’s equity account.
4.The transaction would decrease an asset account and decrease a liability account.
5.The transaction would increase one asset account and decrease another asset account.
6.The transaction would decrease one liability account and increase another liability account.