What are the basic elements of financial accounting system

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1. What are the basic elements of a financial accounting system? Do these elements apply to all businesses from a local restaurant to General Motors? Explain.

2. Provide an example of a transaction that affects (a) only one element of the accounting equation, (b) two elements of the accounting equation, (c) three elements of the accounting equation.

3. Indicate whether the following error would cause the accounting equation to be out of balance and, if so, in- dicate how it would be out of balance. The payment of wages of $6,750 was recorded as a decrease in cash of $6,750 and a decrease in retained earnings (wages expense) of $6,570.

Reference no: EM13899865

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