Accounting equation : Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below: Assets = Liabilities + Owners' Equity Assets = Liabilities+ { ( Owners' investments ) + ( Owners' withdrawals ) + ( ( Revenues ) – ( Expenses ) ) } To analyze : Business transactions by indicating their effects on accounting equation.

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Chapter 1, Problem 1.11EX

To determine

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below:

Assets = Liabilities + Owners' EquityAssets = Liabilities+{(Owners' investments)+(Owners' withdrawals)+((Revenues)–(Expenses))}

To analyze: Business transactions by indicating their effects on accounting equation.

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