What is the influence of economic business on accounting equation?

The influence of economic business on the accounting equation is as follows:

1. The occurrence of an economic business may only involve one or two of assets, liabilities and owners' equity, but in any case, the result must be that the identity relationship of the basic accounting equation remains unchanged.

2. The occurrence of an economic business, if it only involves one of assets, liabilities and owners' equity, will neither affect the equal relationship between the two parties nor change the total amount of both parties.

3. The occurrence of an economic business, if it involves the assets, liabilities and owners' rights and interests of both parties, will not affect the reciprocal relationship between the two parties, but will cause the total amount of both parties to increase and decrease.

Economic business

Economic matters, also known as accounting matters, refer to matters that occur in the production and operation activities or business execution of enterprises, administrative institutions and other units and can cause changes in accounting elements. Refers to transactions or events that increase or decrease accounting elements in economic activities.

It can be divided into foreign economic business and domestic economic business. Foreign economic business refers to economic matters between enterprises and other enterprises or units. For example, raise funds from investors, buy goods from suppliers, repay loans to banks and sell goods to buyers.