Write a 350-word essay describing the accounting equation.
Write a 350-word essay describing the accounting equation.
Include how the accounting equation relates to the components of the balance sheet,
Provide examples that show how the components of the accounting equation affect each other and how transactions affect the accounting equation.
Format your paper consistent with APA guidelines.
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An accounting equation is the foundation in which the double entry standards are based on. Double entry accounting means that every transaction that a business does affects at least two different and opposite accounts in an equal measure. It outlines the fact that the source of finance used to acquire company assets can only come from either borrowing or from company shareholders (Warren, Reeve, and Duchac, 2009). This therefore gives an equation of Assets is equal to liabilities of a company added to….
APA
462 words
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