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

Question 175

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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.
 Type  Example of Tran saction  Assets = Liabilities + Stockholders’ Equity 1. Increase  Increase 2. Increase  Increase 3. Decrease  Decrease 4. Decrease  Decrease 5. Decrease  Increase \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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