Overview
Economic events are crucial for understanding how businesses operate and maintain their financial health. These events, which include transactions like sales and purchases, directly affect the accounting equation: Assets = Liabilities + Equity. This equation is fundamental in accounting, ensuring th...
Key Terms
Example: Cash, inventory, and property.
Example: Loans and accounts payable.
Example: Common stock and retained earnings.
Example: Selling a product for cash.
Example: Balance sheet and income statement.
Example: Sales revenue from products sold.