Accounting equation can be termed as the foundation stone of the modern day accounting. The financial position of a business is affected by its financial transactions and these financial transactions are measured by following parameters called assets, liabilities and owner’s equity. The accounting equation
The accounting equation is an important concept used to capture the effect of economic events; Assets = Liability + Owner’s Equity. It is included in the balance sheet that is called accounting equation.
Accounting Principles and Accounting Equation Definition and Explanation: Accounting is the language of business. Affairs of a business unit are made understood to others as well as to those who own or manage it through accounting information which has to be suitably recorded, classified,
Accounting Equation Learning Objective: Define and explain accounting equation. Give an example of accounting equation. Definition and Explanation of Accounting Equation: Dual aspect may be stated as “for every debit, there is a credit.” Every transaction should have twofold effect to the extent of