Basic accounting equation

Assets + Expenses = Liabilities + Owner's Equity

Assets + Expenses = Liabilities + Owner's Equity

Assets + Liabilities = Owner's Equity

Liabilities + Revenue = Assets

Owner's equity increases

Owner's equity decreases

Owner's equity remains unchanged

It depends on the specific assets that increased

Accounts Payable

Equipment

Owner's Drawings

Owner's Capital

Assets decrease, liabilities decrease

Assets decrease, owner's equity decreases

Assets increase, liabilities increase

Assets increase, owner's equity decreases

Income Statement

Balance Sheet

Statement of Cash Flows

Statement of Owner's Equity

Payment of rent expense

Purchase of inventory on credit

Sale of goods for cash

Payment of vehicles on credit

Bank

Interest expense

Mortgage loan

Debtors control

Assets decrease, liabilities decrease

Assets increase, owner's equity increases

Assets increase, liabilities increase

Assets increase, assets decrease

Assets minus liabilities equals owner's equity

Liabilities must always equal owner's equity

Assets must always equal owner's equity

Assets must always equal liabilities

Creditors control

Drawings

Mortgage loan

Land and buildings