Analyze the Transactions of a Business Organized as a Proprietorship

question 31

Essay

Analyze the transactions of a business organized as a proprietorship described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point in a certain period.

Decrease

A reduction in quantity, size, or intensity of a particular entity or activity.

Increase

An upward movement in quantity, price, or value.

Increase in Supply

A situation where the quantity of a good or service that producers are willing to supply at a given price rises.