Analyzing Transactions

Analyzing Transactions - recording the transaction. Assume...

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Analyzing Transactions The first step in the accounting process is to analyze every transaction (economic event) that affects  the business. The accounting equation (Assets = Liabilities + Owner's Equity) must remain in  balance after every transaction is recorded, so accountants must analyze each transaction to  determine how it affects owner's equity and the different types of assets and liabilities before 
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Unformatted text preview: recording the transaction. Assume Mr. J. Green invests $15,000 to start a landscape business. This transaction increases the company's assets, specifically cash, by $15,000 and increases owner's equity by $15,000. Notice that the accounting equation remains in balance....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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