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    Effect of business transaction on the accounting equation

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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/business-math/effect-of-business-transaction-on-the-accounting-equation-88633

    Solution Summary

    The solution gives an example of a business transaction that has the following 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.

    $2.19

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