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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The accounting equation describes double entry accounting systems and it is arranged as: assets are equal to the summation of liabilities and the shareholder’s equity. In accounting each business transaction influences the firm’s financial position. The financial position of a firm can be measured using component such as assets, liabilities and owner’s equity. Owner’s equity basically refers the subtraction of liabilities from assets. This implies that the accounting equation provides an insight into the relationship…..
APA
409 words