Concept explainers
Concept Introduction:
There is a basic accounting equation also known as a
Balance Sheet:
A Balance Sheet is a part of financial statements which reflects entity’s assets, liabilities and equity at a specific point of time. In Balance Sheet the following equation prevails:
Total Assets = Total Liabilities + Total Equity
Requirement-1:
To Identify: Whether there is an increase or decrease in equity during the year.
Requirement-2:
To Identify:
To state four reasons for change in equity
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Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package