Accounting equation: Difference between revisions
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== See also == | == See also == | ||
* [[Accounting]] | |||
* [[Assets]] | * [[Assets]] | ||
* [[Balance sheet]] | * [[Balance sheet]] | ||
Revision as of 23:44, 6 July 2022
Financial reporting - primary statements - bookkeeping.
The accounting equation follows from the double-entry principle of bookkeeping.
It is usually expressed as:
- Assets - Liabilities = Equity
Alternative presentations of the accounting equation include:
- Assets = Liabilities + Shareholders' Funds; OR
- Assets = Liabilities + Equity
