International Accounting eleeming session material tode) Chapter 2- Recording Business Transactions Directed Reading Worksheet 7. What is the definition of liability? Part : Explain what a business transaction is (L011 1. Nini is any event that has a fnancial impact on the business and can be measured reliably 8. Ut the three most common types of abilities. 2. What two things must happen for an event to be considered a transaction? 9. What is equity? Part II: Keep track of financial statementams |LO2) 3. What is the accounting equation? 10. What we man types of accounts are in stockholders' equity? 4. Ain is the record of all the changes in a particuler reset, liability, or stockholders' eculty during a period. 5. What is the definition of an asset? 11. What effect does revenue have on shareholders' equity? What effect da expenses have on shareholders' uity? 6. Ust seven asset accounts that a company is skely to have