2 Assets and Liabilities

Great work. Thanks for working through basic accounting equation concepts and completing the activities as you go. Feel free to revisit these concepts as you move through the textbook, and to re-do any of the activities. You’re now in a good position to look at transactions: events that make assets, liabilities, and/or equity balances change. Such transactions might be selling to a customer, buying inventory, paying employees, or taking on debt. Let’s move to the next chapter and take a look.