Difference between revisions of "Basic accounting equation"
| Line 1: | Line 1: | ||
| − | [[File:Books.png|400px|thumb|right|[[Double-entry bookkeeping]]]][[Basic accounting equation]] (or, simply, [[accounting equation]]; hereinafter, the ''byby'') is [[Assets]] = [[Liabilities]] + [[Owner's equity]]. | + | [[File:Books.png|400px|thumb|right|[[Double-entry bookkeeping]]]][[Basic accounting equation]] (or, simply, [[accounting equation]]; hereinafter, the ''byby'') is [[Assets]] = [[Liabilities]] + [[Owner's equity]]; the same equation can be expressed as [[Owner's equity]] = [[Assets]] less [[Liabilities]], etc. The [[double-entry bookkeeping|double-entry method of bookkeeping]] is based on this equation. |
Revision as of 19:27, 17 December 2018
Basic accounting equation (or, simply, accounting equation; hereinafter, the byby) is Assets = Liabilities + Owner's equity; the same equation can be expressed as Owner's equity = Assets less Liabilities, etc. The double-entry method of bookkeeping is based on this equation.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
