Final answer:
An example of transactions in business accounting includes using cash to pay off debt, selling equipment for cash, and issuing new bonds to replace existing ones, affecting various assets and liabilities differently.
Step-by-step explanation:
Examples of Transactions Affecting Assets and Liabilities
An example of a transaction that results in a decrease in an asset and a decrease in a liability would be if a company pays off a portion of its debt. When the company uses its cash (an asset) to pay down the debt (a liability), both the cash account and the liability account are reduced.
An example of a transaction that results in a decrease in one asset and an increase in another asset is when a company sells an old piece of equipment (decreasing a fixed asset) and receives cash (increasing current assets) in return.
For a decrease in one liability and an increase in another liability, consider a company that issues new bonds to pay off existing bonds. This would decrease the existing bond liability and create a new bond liability, possibly with different terms or interest rates.