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It’s been observed that most students graduate without getting the basics of the business management subjects. Transactions play a very important role in this field. Here in myhomeworkhelp.com, you’ll find all the basics and the most important things that are mandatory to understand how actually business works.
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Why to learn analysis of transactions?
Do you even realize that you are a part of transaction every single day? Every time you take a loan, a purchase is made or you pay a bill, a transaction is made. Business is all about what you give and in return that you get. That’s where analysis is so important. So, we are here to give you the best of analysis of transactions assignment help.
Analysis of transactions is important in business field or accounting process because of the following reasons:
1. It defines the financial impact that takes place in an event of an organization.
2. All the account statements are made fair only by the help of analysis of transactions.
3. It defines the financial changes taking place in an organization.
Basics of Analysis of Transactions:
For a transaction to occur, thebalance between a debit and a credit is required.When a transaction occurs, a debit and a credit take place.
1. Debit-
Left side account entry which increases balance of account asset and decreases the balance of a liability or owner’s equity.
2. Credit-
Right side account entry which decreases balance of account asset and increases the balance of a liability or owner’s equity.
3. Asset: What a person owns.
4. Liabilities: What a person owes.
5. Owner’s equity: Amount of money that a person personally invests in the business.
6. Accounting equation: Asset = Liabilities + Owner’s Equity.
What is double-entry accounting?
A double-entry accounting is that system which is based on the theory where there is an effect in at least two accounts for every one transaction done.
This is just a very short demo of Transactions to get into the field. Now, analysis of transactions homework help can give you the best of the knowledge you need and to any extend that you want.
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