There Are Three Elements to the Accounting Equation: Assets,liabilities,and Stockholders

question 160

Essay

There are three elements to the accounting equation: assets,liabilities,and stockholders' equity.Below are five possible types of transactions.For each of these five types,write a description of an example that would illustrate this type of transaction.
$$\begin{array} { | l | c | c | c | c | } \hline \text { Type } & \text { Example of Tran saction } & \text { Assets } = & \text { Liabilities } + & \text { Stockholders' Equity } \\\hline 1 . & & \text { Increase } & \text { Increase } & - \\\hline 2 . & & \text { Increase } & - & \text { Increase } \\\hline 3 . & & \text { Decrease } & \text { Decrease } & - \\\hline 4 . & & \text { Decrease } & - & \text { Decrease } \\\hline 5 . & & \begin{array} { c } \text { Decrease } \\\text { Increase }\end{array} & - & - \\\hline\end{array}$$

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Definitions:

Lack of Loyalty

The absence of fidelity or allegiance towards a group, organization, or cause, often leading to trust issues or instability.

Virtual Organization

An organization that operates primarily through digital and telecommunication networks rather than in a physical location.

Strategic Alliances

Business agreements between two or more companies to work together toward achieving mutually beneficial strategic goals.

IT and Internet

The study and application of systems for storing, retrieving, and sending information through computers and telecommunication devices.