For each of the following categories, state concisely a transaction that will have the required effect on the elements of the accounting equation. Increase an asset and increase a liability. Decrease an asset and decrease a liability. Increase one asset and decrease another asset. Increase an asset and increase owners’ equity. e. Increase one asset decrease another asset and increase a liability

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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