Examlex
A woodchuck tries to crack a walnut shell in two different ways-with his paws and with his teeth. The last method worked and the first did not; hence, the woodchuck will be more likely to rely on his teeth for splitting the next nut. This observation illustrates the:
Transaction
Any event or activity that affects the financial position of a company and can be measured reliably in monetary terms.
Accounts
Records that summarize all the transactions related to a specific financial aspect, such as assets, liabilities, equity, expenses, and income.
Basic Accounting Equation
Assets = Liabilities + Owner’s equity.
Assets
Economic resources owned or controlled by an individual, company, or entity, expected to provide future benefits.
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