(Effect of Transactions on Accounting Equation) For each of the following transactions, identify whether there is an increase or decrease in profit, cash flow, assets, or liabilities.
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Transaction |
Profit |
Cash Flow |
Assets (excluding cash) |
Liabilities |
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Owner Contributes cash |
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Buys equipment on credit |
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Buys inventory on credit |
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Takes out a loan from the bank |
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Sells goods on credit |
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Pays cash for expenses |
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Pays cash to suppliers |
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Receives cash from customer |
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Depreciates equipment |