Accountancy, asked by mahaksiddiqui, 1 year ago

first equation of accountancy


anuritha: you mean olden rules

Answers

Answered by Anonymous
6
The equation that is the foundation of double entry accounting. The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company's shareholders. Thus, the accounting equation is: Assets = Liabilities + Shareholder Equity. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity.
 

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