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Question: 1. Explain the difference between external transactions and internal transactions. If a company purchases supplies from a local vendor, would this be classified as an external or internal transaction?

2. List the steps we use to measure external transactions.

3. Each external transaction will have a dual effect on the company's financial position. Explain what this means.

4. Describe the impact of each of these external transactions on the accounting equation.

a. Receive a loan from the bank.

b. Pay employee salaries for the current period.

c. Receive cash from customers for services provided in the current period.

d. Purchase equipment by paying cash.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92328165

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