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    Business Transactions

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    For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:

    Increase an asset and increase a liability.
    Increase one asset and decrease another asset.
    Decrease an asset and decrease owner's equity.
    Decrease an asset and decrease a liability.
    Increase an asset and increase owner's equity.

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    https://brainmass.com/business/accounting/business-transactions-97667

    Solution Preview

    Increase an asset and increase a liability.
    When you borrow money, cash(asset) increases and bank borrowings (liability) increase

    Increase one asset and decrease another asset.
    When accounts receivable are collected - cash (asset) is ...

    Solution Summary

    The solution explains the business transactions that would result in the given effects on the accounting equation.

    $2.19

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