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When owners invest money in their business the effect on the accounting equation is that the investment increases what?
Wiki User
∙ 15y ago
increase assets and increase owners equity
Wiki User
∙ 15y ago
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What must be done if a transaction increases the left side of the accounting equation?
Correct the transaction so that the double entry also increases the right hand side of the accounting equation so that the equation (always) balances.
Which one of the following is not a difference between a retail business and a service business?
accounting equation
What are the effects on the accounting equation from the purchase of a short-term investment?
no effects- assets increase and decrease by the same amount
How does rendering of services for cash affect the accounting equation?
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
How might the way you run your business be changed by financial information?
production what is accounting equation
Fundamental accounting equation?
One fundamental accounting equation is the same for business. Variable cost plus fixed costs equals total costs. This will help accountants when they are pricing products.
What does the Accounting Equation in accounting?
The Accounting Equation is Assets=Liabilities + Owner's Equity?
Can a business enter into a transaction in which only the left side of a basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
Can a business enter into a transaction in which only the left side of the basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
What is duality?
The concept of duality means that every business transaction will have a dual effect on the accounting equation.
What is duality concept?
The concept of duality means that every business transaction will have a dual effect on the accounting equation.
What is the effect on accounting equation if assets increases?
accounting equation assets = liabilities + capital so if assets increases either liability or capital will increase for this purpose 1. assets means both long term assets and short term assets 2. capital means owners equity 3. liability means outsliders liability
