At the beginning of the fiscal yea the balance sheet showed asset of $2,475 and owners' equity of $1,216. During the year, assets increased $450 and liabilities

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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