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Computation Classification of Transactions Homework Answers

Understanding Accounting and its calculations are always tough and if this is the thought that comes to your mind all the time than you are not alone. Many students are in the similar situation where it’s confusing for them to learn and understand the concept of accounting.Accounting is a subject that cannot be learnt overnight, it needs lot of practice and regular guidance from experts.This gives an opportunity to computation classification of transactions homework answers help business organizations.

Assets, liabilities & capital are three major elements that are necessary for every business organization. The relationship between the three elements is best described in the accountancy subject. The computation classification of transactions that take place in business operations cannot be ignored as mathematical calculations are facts and remained unchanged throughout the life cycle of business entity.

Why the Computation subject is difficult?

The relation between the above stated three elements further leads to few critical transactions such as:

  • Increase and decrease in assets & liabilities- Purchase of furniture will involve two assets furniture & assets. The transaction will increase an asset which is furniture and decrease cash. Simultaneously Creditors of goods and services sometimes draw bill of exchange and post acceptance of bill payment becomes due, acceptance of bill decreases liabilities.
  • Increase and decrease in capital- Some transactions only involve capital, for example transfer of shares from one party to another stakeholder party. In such transaction increase and decrease of capital will remain same and have no impact on accounting transactions.
  • Increase in capital and decrease in liabilities & vice versa- Once the loan is concerted into capital it reduces the liability and increase the capital of company. On same note capital can also be converted into loan as a liability. This kind of transactions will show partners loan as a liability instead of capital and it will decrease the capital and increase the liability.

The major aspect that can be taken into consideration after while computation classification of transactions is that students are most of the time confused where to put the values and in which columns. Therefore, the needs for computation classification of transaction homework answers are gaining popularity. In case you also think that you are among those confused students than homework answers help services can serve you best and will solve all your queries.

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