This week we will have two questions to prompt our discussion.
First, give an example of a transaction that has the following results and what would the entry look like?
(a) A decrease in an asset and a decrease in a liability.
(b) A decrease in one asset and an increase in another asset.
(c) A decrease in one liability and an increase in another liability.
Second, do the following events represent business transactions? Explain your answer in each case.
(a) A computer is purchased on account.
(b) A customer returns merchandise and is given credit on account.
(c) A prospective employee is interviewed.
(d) The owner of the business withdraws cash from the business for personal use.
(e) Merchandise is ordered for delivery next month.
please cite your sources