After each transaction, the accounting equation must remain in balance.

When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.

A transaction for the sale of goods or services results in a decrease in owner's equity.

When financial records for a business and for its owner's personal belongings are not mixed, this is the proper application of the Business Entity accounting concept.

When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.

An expense is a decrease in owner's equity resulting from the operation of a business.

When two asset accounts are changed in a transaction, there must be an increase & decrease (ex. Insurance)