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.
Task 1. What is an Accounting Equation and explain why the accounting equation will always work?Provide an example with your explanation. (10 Marks) Task 2 2. What benefits might a company gain from having its shares listed on a stock exchange? (20 Marks) – 500 words for this task. – Content covered in Week 5 […]
Social responsibility 1. What is an Accounting Equation and explain why the accounting equation will always work?Provide an example with your explanation. (10 Marks – ca. 250 words) – Chapter 3 of book 2. What benefits might a company gain from having its shares listed on a stock exchange? (20 Marks – ca. 500 words) […]
Each financial transaction in a business has what is called a “dual effect” on the accounting equation. Explain this term and give an example of a financial transaction and how it affects each account.
