Transactional Accounts Interview Question:

List the examples of accounting equation?

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★ A sale to a customer results in an increase in accounts receivable (asset) and an increase in revenue (indirectly increases stockholders' equity).
★ A purchase from a supplier results in an increase in expenses (indirectly decreases stockholders' equity) and a decrease in cash (asset).
★ A receipt of cash from a customer result in an increase in cash (asset) and a decrease in accounts receivable (asset).
★ Borrowing funds from a lender results in an increase in cash (asset) and an increase in loans payable (liability).
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