Four major types of transactions that affect equity in a business are

Equity in a business is simply the net worth of an individual or a company or a business organisation. It is calculated by subtracting liabilities from the assets (Assets - Liabilities). It is the sum of earnings, inventory and other assets less overheads, loans and other liabilities incurred by a business. Therefore, in this case the major types of transactions that affect equity in a business includes, revenues, expenses, owners withdrawals, and owners investments.

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