Pages

Friday, April 1, 2016

Accounting Equation

Every business transaction has an effect on company's financial position and the financial position on and organization can be measured by the following items:
Assets
Liabilities
Owner Equity
Using the above terms we are now able to make an accounting equation as:

                                 Sole business    Assets = Liabilities + Owner Equity
                               Corporate    Assets = Liabilities + Shareholder's Equity

No comments:

Post a Comment