When accounting was developed in the 14th and 15thcenturies, some businesses had very short lives. Forinstance, a business might have been created for a shipto sail from Europe to North America and return withfurs and other goods. After the goods were delivered andprofits were distributed among those who financed theshipment, the business ceased to exist. In more recentcenturies, businesses began to experience longer lives.Identify the accounting concept that is needed whenaccounting for businesses with long lives. Explain whatthis concept means and why it is necessary for modernday accounting

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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