Glencoe Accounting

Chapter 3: Business Transactions and the Accounting Equation

Working in the Real World

When business transactions occur, assets, liabilities, and equity are affected. It is important to be able to classify components of transactions in the proper category. Use the Dictionary of Small Business (www.small-business-dictionary.org) or All Business's glossary (www.allbusiness.com) to find the definitions for and examples of "asset" and "liability."