This document discusses how transactions affect the accounting equation. The accounting equation states that assets must always equal liabilities plus owners' equity/capital. The document examines how different transactions can change the amounts of assets, liabilities, and owners' equity that are recorded on a company's balance sheet.
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Transication Affects On Accounting Equation
This document discusses how transactions affect the accounting equation. The accounting equation states that assets must always equal liabilities plus owners' equity/capital. The document examines how different transactions can change the amounts of assets, liabilities, and owners' equity that are recorded on a company's balance sheet.