The expanded basic accounting equation contains seven account categories: assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses.

\section*{Instructions}

With the class divided into seven groups, each group should choose one of the seven account categories and do these exercises.

(a) Explain the increase/decrease side of the account and the normal balance of the account.

(b) Give an example of a transaction that will result in an increase in the account category.