What Is Fundamental Accounting Equation?

1.	What Is Fundamental Accounting Equation?
Answer» Accounting equation is a mathematical EXPRESSION used to describe the relationship between the ASSETS, liabilities and OWNER's equity of the business model. The basic accounting equation STATES that assets equal liabilities and owner's equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owner's equity. Accounting equation is a mathematical expression used to describe the relationship between the assets, liabilities and owner's equity of the business model. The basic accounting equation states that assets equal liabilities and owner's equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owner's equity.

Answer»

Accounting equation is a mathematical EXPRESSION used to describe the relationship between the ASSETS, liabilities and OWNER's equity of the business model. The basic accounting equation STATES that assets equal liabilities and owner's equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owner's equity.

Accounting equation is a mathematical expression used to describe the relationship between the assets, liabilities and owner's equity of the business model. The basic accounting equation states that assets equal liabilities and owner's equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owner's equity.

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