Response to the following questions:
1. What types of transactions increase equity? What types decrease equity?
2. Why are accounting systems called double-entry?
3. For each transaction, double-entry accounting requires which of the following?
(a) Debits to asset accounts must create credits to liability or equity accounts,
(b) a debit to a liability account must create a credit to an asset account, or
(c) total debits must equal total credits.
4. Explain what a compound journal entry is.