financial accounting chapter one part two

School of Business
Department of Accounting

BACC200- Financial Accounting
Chapter 1 | Part 2

Accounting in Action

,Objective:
• Analyze the effects of business transactions on the accounting
equation.

• Tabular Analysis

, LEARNING Analyze the effects of business transactions on the
OBJECTIVE
1 accounting equation.


Transaction analysis using the accounting equation

A transaction is a business event that has a monetary impact on the
company, and should be recorded in its accounting records.
Example Paying money for the purchase of a computer


Transactions
 May be external or internal.

 Not all activities represent transactions.

 Each transaction has a dual effect on the accounting equation.