79.0k views
2 votes
Four major types of transactions that affect equity in a business are

1 Answer

5 votes
Equity in a business is simply the net worth of an individual or a company or a business organisation. It is calculated by subtracting liabilities from the assets (Assets - Liabilities). It is the sum of earnings, inventory and other assets less overheads, loans and other liabilities incurred by a business. Therefore, in this case the major types of transactions that affect equity in a business includes, revenues, expenses, owners withdrawals, and owners investments.
User Rus Mine
by
7.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.