Chapter 3, Problem 4Q

(a)

To determine

Accounting Transaction:

An economic event, which causes impact (increases or decreases the value of the assets, liabilities or stockholder’s equity) in the accounting equation, is referred to as accounting transaction.

Accounting Equation:

Accounting equation is the mathematical representation of the relationship among the assets, liabilities, and stockholder’s equity at any given point of time. The components of the accounting equation include the assets, liabilities and stockholder’s equity. In the accounting equation, the assets, which are on the left side of the equation and the liabilities and stockholder’s equity which are on the right side must always balance. The accounting equation is as follows:

$\boxed{\text{Assets = Liabilities + Stockholder's Equity}}$

To indicate: the manner in which each business transaction affects the basic accounting equation.

(b)

To determine

To indicate: the manner in which each business transaction affects the basic accounting equation.

(c)

To determine

To indicate: the manner in which each business transaction affects the basic accounting equation.

(d)

To determine

To indicate: the manner in which each business transaction affects the basic accounting equation.