Accounting equation: Difference between revisions
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* [[Accounting]] | * [[Accounting]] | ||
* [[Assets]] | * [[Assets]] | ||
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* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Bookkeeping]] | * [[Bookkeeping]] | ||
Revision as of 16:02, 18 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
