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:

Fetal Alcohol Syndrome

A condition resulting from alcohol exposure during pregnancy, characterized by growth deficiencies, facial abnormalities, and central nervous system problems.

Abnormalities

Divergence from the normal or usual structure, function, or behavior.

Intellectual Development

A process referring to the growth and changes in a person’s ability to think, reason, and understand the world around them.

Methadone

A laboratory-made opioid-like drug.