According to the accounting equation, when owner's equity is constant, any increases in liability will cause   in assets

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: According to the rules of debit and credit for balance sheet accounts? a. Decrease in asset and…

A: Increase in asset is recorded by debit. Increase in liability is recorded by credit. Increase in…

Q: Indicate whether each of the following accounts represents an asset, liability, or owner's equity:…

A: An asset refers to all the items of cash and cash equivalents for the business. It includes balance…

Q: Which one of the following represents the expanded basic accounting equation? Assets = Liabilities +…

A: solution : the correct answer is Assets + owners drawings + expenses = liabilities + owners capital…

Q: Which of the following is False about the left side of a T - account ? A. It reflects a decrease…

A: This Numerical has covered the concept of Normal Balance of Accounts and T-Accounts also. The left…

Q: The accounting equation may be expressed as(a) Assets = Liabilities - Owner's Equity.(b) Assets =…

A: The different accounts in business balance sheet are described as assets, liabilities and owner's…

Q: When the payment is made to creditors, it would result in which among the following? a. decrease…

A: Creditors are the persons to whom the entity has to pay some due money.

Q: b. Give an example for each of the following types of transactions for the accounting equation: i.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Which of the following is true of unearned revenue? It is a liability account that is increased when…

A: Unearned revenue is simply cash received in advance.   Advance cash is received when services have…

Q: Revenue, expense, and dividend accounts accumulate changes in owners’ equity during an accounting…

A: Revenue is expressed as the principal source of income for any enterprise. It is basically the…

Q: Can a business transaction cause one asset to increase with-out affecting any other asset,…

A:

Q: Which of the following is not a component of the statement of changes in equity? A. Comprehensive…

A: Changes in equity statement is a part of financial statement that shows the reason for changes in…

Q: The accounting equation may be expressed as a.Assets = Expenses - Liabilities b.Assets -…

A: The equation where assets are equal to liabilities is called an accounting equation, in this…

Q: A debit balance in the Retained Earnings accounts is reported as a (an) a. asset b.…

A: Retained Earnings refers to amount of Profit set aside by the company during the year. it is known…

Q: he payment of liabilities would cause what effect on corresponding accounts?     Both increase…

A: The accounting equation signifies that the assets of a business are always equal to the total of…

Q: The accounting equation Assets = Liabilities + Owners' Equity must hold at every point in time…

A: Basically we know that, accounting equation is fundamental to the double-entry accounting system…

Q: A) Which of the following would not be included as a current liability? (Land loan, Land loan…

A: Current liability is a short term obligation that is typically due within one year or payable in…

Q: Give an example of business transactions that would:a. Cause one asset to increase and another asset…

A: a.

Q: All of the following statements are correct except • The payment of a liability decreases both…

A: Solution: All of the following statements are correct except "A change in assets is always…

Q: Owner's equity can be increased through a.expenses exceeding revenues. b.investments by the owner.…

A: Stock holders equity: Common stock is one of the parts in the stockholders’ equity. The common stock…

Q: Which of the following equations is the standard basic accounting equation? Assets minus owner's…

A: Accounting equation means the relation between the assets , liabilities and owner equity. Assets…

Q: Calculate the missing value (in $) according to the accounting equation. Assets Liabilities Owner's…

A: The accounting equation refers to the equation of the balance sheet. It is based on the method of…

Q: When a company pays its rent in advance, its balance sheet will refl ect a reduction in: B . assets…

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: What effect does “recognizing revenue at the end of the accounting period for rent previously…

A: Recognizing revenue at the end of the accounting period for rent previously received in advance. the…

Q: According to the IASB Framework for the preparation and presentation of financial statements, which…

A: According to the IASB Framework for the preparation and presentation of financial statements, which…

Q: Which of the following accounts is an owners equity account ? A.Account payable B.Prepaid expenses…

A: Owners Equity Account It is the owners' investment in an asset after all liabilities have been…

Q: 39. Which refers to the remaining amount of the assets after paying all the company’s liabilities?…

A: Accounting equation says that total assets should always be equal to liabilities and equity because…

Q: Based on the balance sheet that given, calculate and explain the A. Liability ratio B. Asset ratio…

A: Ratio analysis is very important technique of analysis and review. Various types of ratios are…

Q: Does the accounting equations show the relationship among assets, liabilities, and owners' equity?…

A: The Accounting Equation shows on a company's balance sheet whereby the sum of the company's…

Q: Calculate the missing value using the accounting equation Assets Liabilities Owner's Equity 141,792…

A: Accounting equation in the business says that total assets must be equal to total liabilities and…

Q: tement of changes in owners equity summarizes the effects on the capital account of the various…

A: Solution: The statement of changes in owners equity represents the changes in balance of equity from…

Q: Explain how a company might use the accounting rules for impairment of long-lived assets to manage…

A: Long live assets: Those assets which are expected to provide the benefits of more than one year.…

Q: The​ owners' claims to the assets of the business are called​ ________.     A.equity   B.expenses…

A: As per the accounting equation,  Assets = Liabilities + Equity  and such relation always holds true.

Q: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus…

A: Income statement is the financial statement that helps the users to know the profitability position…

Q: The business incurs some liability. Which of the following is an example of liability ? O a. cash. O…

A: A liability is a company's payable to another business.

Q: When prepaid rent is recognized as an expense, which of the following is true? Select one: a.…

A: Deferred expenses: Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: IDENTIFY THE EFFECTS OF THE TRANSACTIONS BELOW ON THE ACCOUNTING EQUATION. USE THE GUIDE ABOVE.…

A: Below is the impact of given transactions

Q: Owner's equity can be increased through _____. a. withdrawals by the owner b. purchase of assets by…

A: Solution: Withdrawl by owner decrease the owner's equity Purchase of assets by cash do not affect…

Q: When liability, capital, and revenue accounts increase, there will be a

A: Every transaction has two effect that is one account would be debited and another account would be…

Q: Which of the following financial statements shows the changes in Owners' equity during a period of…

A: Option A :— It is Incorrect. Because Income Statement :— It is one of the financial statements of a…

Q: What is the effect of recording an accrued expense? Increase an expense; decrease an asset Decrease…

A: Under the accrual basis of accounting, transactions are recorded as and when they occur irrespective…

Q: According to the rules of debit and credit for balance sheetaccounts:a. Increases in asset,…

A: Balance Sheet accounts for assets & liabilities as well as equity. This is a process that is…

Q: Net loss: O A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of…

A: The equity includes the capital that relates to shareholders.

Q: For each of the following categories, state concisely a transaction that will have the required…

A: All expenses, losses, and assets should be debited and all income, gain, and liabilities should be…

Q: As per the accounting equation, equity can be represented as __________________. Excess of assets…

A: Accounting is the detailed process of book keeping. Under the first step of accounting, all…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is