This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 2 2. To illustrate this concept of vr=vg, we refer again to the three transactions introduced in In-class Practice question 1: Transaction (a)—Invested Cash. Transaction (b)—Paid Cash for Housekeeping Supplies Transaction (c)—Purchase of Furniture and Equipment on Account Take-away In these three examples, we saw how each transaction involved an equal exchange of values: The value received (vr) was always equal to the value given (vg). In each transaction, there was only one vr and one vg. However, many transactions involved two or more values received and/or two or more values given. In such cases, the equality of values exchanged will still prevail. 3 3. How we can determine what accounts need to be debited and what accounts need to be credited in recording business transactions (1) Borrowed $10,000 from the ABC Bank, signing a 90-day promissory note. (2) Paid rent for the month, $1,000 ....
View Full Document
This note was uploaded on 10/08/2011 for the course HTM 458 taught by Professor Bu during the Spring '09 term at S.F. State.
- Spring '09