ACC 281 Week 1 DQ1

What are the implications of the basic accounting equation? You must respond to at least two of your classmates' postings to receive full credit.

Every business transaction that is processed will have an implication on an organization's financial status. The accounting equation is what will keep transactions in balance and will also helps people make sense of what areas each transaction affects. The financial position is based on the following elements.

Assets liabilities equity

Edmonds, T. (2010), states, "Further expansion of the accounting equation can show the three sources of assets (liabilities, common stock, and retained earnings).

Assets Liabilities Common Stock Retained Earnings" (p. 23).

The three aspects of the basic accounting method is:...