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Fundamental Accounting Equation - Politics, Business, Civil, History - Posted: 16th Jun, 2010 - 11:50pm
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Accounting
Post Date: 2nd Oct, 2009 - 6:06pm / Post ID: #
Fundamental Accounting Equation
Fundamental Accounting Equation
What exactly is the "Fundamental Accounting Equation"?
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Equation Accounting Fundamental
At first, I was completely lost with this question. I guess I don't really think of this equation in those terms.
The equation is: Assets = Liability + Equity. That is, if there is a change in total assets, there must be an equal change in Liability and/or Equity. There can be incremental changes in Assets that don't change total assets (such as receiving cash in payment for accounts receivable from a customer) that don't affect liabilities or equity. The same can be said for the right side of the equation.
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Post Date: 16th Jun, 2010 - 11:50pm / Post ID: #
Fundamental Accounting Equation History & Civil Business Politics
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Comments: It is considered an equation because often both sides must balance or be equal.
TOPIC: Fundamental Accounting Equation