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What transactions increase or decrease owner equity

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Reference no: EM132045138

Assignment 1: Discussion-The Accounting Equation

By the due date assigned, respond to the following in the Discussion Area below:

The accounting equation is assets = liabilities + owner's equity.

Please explain the relationship between economic resources and claims to economic resources.

• Why must this equation always balance?

• What transactions increase or decrease owner's equity?

• How does net income or loss affect owner's equity?

• Provide an example of a transaction, applied to the accounting equation.

Be sure to cite any sources using APA style. You may use this APA Citation Helperas a guide.

Through the end of the module, provide substantive responses to at least two other students' initial posts. Be sure to post to the Discussion Area on two different days to meet your weekly attendance requirement.

Reference no: EM132045138

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