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If you have difficulty answering the following questions, learn more about this topic by reading our Accounting Equation (Explanation).
For each of the transactions in items 2 through 13, indicate the two (or more) effects on the accounting equation of the business or company.
Information for Items 10 through 13
Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June.
Which of the following will cause owner's equity to increase?
Which of the following will cause owner's equity to decrease?
The accounting equation should remain in balance because every transaction affects how many accounts?