the accounting equation
noun[S]
ACCOUNTINGukus(alsothe balance sheet equation)amathematicalstatementshowingthat tocalculateacompanyowners'equityyousubtractitsliabilitiesfromitsassets
Examplesofthe accounting equation
the accounting equation
Theaccountingequationis the mathematical structure of the balance sheet.
From
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Theaccountingequationserves as an error detection tool.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.In terms oftheaccountingequation, expenses reduce owners' equity.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Businesses can be considered, for accounting purposes, sums of liabilities and assets; this istheaccountingequation.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.The total amount debited and the total amount credited should always be equal, thereby ensuringtheaccountingequationis maintained.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Since every business transaction affects at least two of a companys accounts,theaccountingequationwill always be in balance, meaning the left side should always equal the right side.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.For the purpose oftheaccountingequationapproach, all the accounts are classified into the following five types: assets, liabilities, income/revenues, expenses, or capital gains/losses.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.