Answered: State the accounting equation

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 3Q: How do revenues and expenses affect the accounting equation?

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State the accounting equation

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The accounting equation is considered to be the establishment of the double-entry bookkeeping framework. On a company's adjust sheet, it appears that a company's total assets are rise to the entirety of the company's liabilities and shareholders' equity.

Based on this double-entry framework, the bookkeeping condition guarantees that the adjust sheet remains “balanced,” and each passage made on the charge side ought to have a comparing section (or scope) on the credit side.

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