Analysis of Transactions Transactions External or Internal? Financing, Investing, or Operating? Effects of the Transactions Debit Credit I. Transactions that affect balance sheet only I.1 Transactions that increase one asset and decrease another asset Example I.2 Transactions that increase one liability and decrease another liability Example I.3 Transactions that increase assets and increase liabilities Example I.4 Transactions that decrease assets and decrease liabilities Example I.5 Transactions that increase assets and increase owners’ equity Example I.6 Transactions that decrease assets and decrease owners’ equity Example I.7
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