Please enable JavaScript.
Coggle requires JavaScript to display documents.
THE EFFECT OF CASH TRANSACTIONS ON THE ACCOUNTING EQUATION, Liabilities,…
-
Liabilities
Assets: What the business owns (e.g., cash, equipment, vehicles).
-
Liabilities: Debts the business owes (e.g., loans, creditors).
Remember: Every transaction affects at least two elements of the equation, ensuring it remains balanced.
-
-
The accounting equation is the foundation of all financial accounting systems. It ensures that every transaction keeps the accounts balanced
-
-
-
Each transaction is recorded based on the double-entry principle, meaning every debit has a corresponding credi