Which of the following transactions causes an increase in working capital?    a. Sale of merchandise on credit at a price above cost. b. Sale of marketable securities at a price below cost. c. Collection of an account receivable. d. Return to supplier of defective merchandise purchased on

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is