In this week’s discussion, we will introduce the basic accounting equation. Understanding the relationship between the equation’s key components is essential in learning accounting. Those components are assets, liabilities, and equity. We will also introduce basic transactions within a company that can occur, and how those transactions are recorded. Finally, we look at the 4 basic financial statements and their particular importance.
1). Define and discuss the accounting equation and each of its components.
2). Give an example of a typical business transaction and discuss its impact on the accounting equation (Your explanation should describe which account(s) are increasing/decreasing and whether those accounts were “debited or credited”).
3). Finally, list and discuss the importance of each of the 4 basic financial statements.
Be sure you cite references appropriately (APA). Also, please review my grading policies related to 1st Posts for full credit.
Post your initial response to the discussion question no later than Thursday 11:59 PM EST/EDT. You will not be able to see any of your classmates’ posts until you have posted your initial response.
- If you are posting your initial response, click the Start a New Thread button.
- If you are responding, click the Reply to Thread button for the thread you wish to respond to.
Respond to at least two of your classmates no later than Sunday 11:59 PM EST/EDT.