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Accounting Transactions

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For each of the following items, give an example of a business transaction:

1. Increase an asset and increase a liability.

2. Increase one asset and decrease another asset.

3. Decrease an asset and decrease owner's equity.

4. Decrease an asset and decrease a liability.

5. Increase an asset and increase owner's equity.

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Solution Summary

This solution provides examples of different accounting transactions.

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1. Increase an asset and increase a liability.
<br>The purchase of inventory on credit: this increases inventory (an asset) and increases accounts payable (a liability).
<br>
<br>2. Increase one asset and decrease another asset.
<br>The purchase of a piece ...

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