Analysis of the Effect of Business Transactions on the Accounting Equation

Abstract

The researcher conducted this study with the aim of comprehensively analyzing the effect of business transactions on the accounting equation. The accounting equation is an equation that shows the balance between assets, liabilities and equity and understands the accounting records so that debits and credits are balanced. Accounting equations can also be used to see the effect of income, expense, expense, and private transactions. The basic accounting equation is the main basis in making financial statements. The formula for calculating the basic accounting equation is asset = liability + equity. While business transactions are all activities that can be reviewed through money and have an impact on the financial position of a company. The relationship between the two is said to be relevant because