Two accounting equalities to maintain in transaction analysis are Assets and Liabilities + Equity.
One key element of performing accounting transaction analysis is ensuring that the accounting equation is balanced. This means that for every debit account entry, you must have a credit account entry of the same amount.
This accounting equation works as-
Assets = Liabilities + Equity
Assets- This refers to the resources of a company and includes cash and cash equivalents, accounts receivable, and inventory.
Liabilities and equity- The liabilities of a company refer to its financial obligations, such as loans, long-term debts, mortgages, and notes payable.The shareholder’s equity of a company refers to the dollar value of the company and can be calculated by subtracting its liabilities from its assets. Both liabilities and equity show how the company has financed its assets.
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Most of the times when a personnel is sent for an official business trip, transportation and lodging, and sometimes even meals are shouldered by the company.
In the statement given above, it is noted that the meals that Melissa took are considered personal in nature. Hence, she can deduct this from the business expenses.
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The Earned Income Credit is one alternative to PRICE controls
Answer:
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Explanation:
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