 
                 
                InterviewSolution
 Saved Bookmarks
    				| 1. | What is meant by accounting equation? explain with illustrations (6,1) | 
| Answer» The accounting equation is the PROPOSITION that a COMPANY's assets must be EQUAL to the SUM of its liabilities and equity. PHRASED differently, it means that the equity of a company is equal to its assets minus its liabilities. | |