Presented below are three business transactions. For each transaction indicate whether there is an Increase, a Decrease or No Effect on the assets, the liabilities and the owner's equity.

Assets
Liabilities
Owner's Equity

(a) Invested cash in the business. Increase DecreaseNo EffectIncrease Increase
(b) Withdrawal of cash by owner. Decrease No EffectIncreaseDecrease Decrease
(c) Received cash from a customer who had previously been billed for services provided. No Effect IncreaseNo EffectDecrease IncreaseDecreaseNo Effect

To determine the impact of each transaction on assets, liabilities, and owner's equity, we need to understand the basic accounting equation:

Assets = Liabilities + Owner's Equity

Now, let's analyze each transaction:

(a) Invested cash in the business:
- Increase in assets: Cash is an asset, and when cash is invested in the business, it increases the asset value.
- No effect on liabilities: Liabilities represent the obligations of the business to outsiders, so investing cash doesn't affect liabilities.
- Increase in owner's equity: Owner's equity represents the owner's share in the business, and when cash is invested, the owner's equity increases.

(b) Withdrawal of cash by owner:
- Decrease in assets: When the owner withdraws cash from the business, it reduces the asset value of cash.
- No effect on liabilities: Liabilities are not affected by the owner's cash withdrawal.
- Decrease in owner's equity: Owner's equity decreases because the owner is taking out money from the business.

(c) Received cash from a customer who had previously been billed for services provided:
- No effect on assets: When cash is received from a customer, it does not affect the asset values.
- Increase in liabilities: Liabilities increase because the business had initially recorded the amount as accounts receivable (what the customer owed), and receiving cash reduces the accounts receivable balance.
- No effect on owner's equity: The owner's equity remains unchanged in this particular transaction.

So, summarizing the effects for each transaction:

(a) Invested cash in the business:
- Increase in assets
- No effect on liabilities
- Increase in owner's equity

(b) Withdrawal of cash by owner:
- Decrease in assets
- No effect on liabilities
- Decrease in owner's equity

(c) Received cash from a customer who had previously been billed for services provided:
- No effect on assets
- Increase in liabilities
- No effect on owner's equity

(a) Invested cash in the business.

- Assets: Increase
- Liabilities: No Effect
- Owner's Equity: Increase

(b) Withdrawal of cash by owner.

- Assets: Decrease
- Liabilities: No Effect
- Owner's Equity: Decrease

(c) Received cash from a customer who had previously been billed for services provided.

- Assets: No Effect
- Liabilities: Increase
- Owner's Equity: No Effect