Accounting Equivalence

Indicate the accounting equivalence of the following transactions. There is no relationship between them.

A public limited company is founded with the shareholders depositing €200,000 in a bank account opened in the company’s name.

1)increase asset cash => increase NE

2) increase asset => decrease asset

b) We buy office furniture and pay by bank transfer.

1)increase asset invent => decrease asset cash in bank

2)increase asset receivable => decrease asset sold furniture

c) We settle the claim by a supplier through a transfer of cash.

1)decrease liab current => decrease asset cash in bank

2) decrease asset cash => decrease asset trade receivable

d) We buy inventories on account.

1)increase asset invent => increase liab supplier

2) decrease asset => increase asset

e) We deposit company cash in the bank current account.

1)increase asset cash in banks => decrease asset cash

2) increase asset cash => increase liab payable

f) The bank pays us interest on our current account.

1)increase asset cash => increase NE interest

2)decrease NE interest => decrease asset cash

g) We receive a trade note from a customer.

1)increase asset receivable => decrease asset client

2)decrease liab suppliers => increase liab trade not payable

h) We are paid €100,000 for our building, valued in our accounting books for the same amount.

1) increase