This learning resource focuses on applying a systematic four-step transaction analysis process to asset and liability transactions in accounting. Students will learn to identify affected accounts, classify them appropriately as assets or liabilities, determine whether the accounts increase or decrease, and decide whether to record these changes as debits or credits. The resource includes examples such as buying equipment and supplies on account, alongside guided and independent practice activities that encourage students to apply their understanding through transaction analysis logs. Additionally, a challenge task prompts students to explain the rationale behind classifying certain transactions as changes in liabilities rather than owner’s equity, reinforcing critical thinking and application of the concepts learned.