a) Recording the usage of supplies involves an increase in liabilities and a decrease i e b) The accrual of salaries is considered a claims exchange transaction. c) An asset use transaction cannot result in an increase in equity. d) Asset exchange transactions cannot affect cash flows. e) Some claims exchange transactions involve an increase in a liability account and a crount

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is