On the basis of the accounting equation, the financial position and the operating result of a business can be recorded and reported to the interested users of accounting
Which of the following is the fundamental accounting equation?
These three basic elements, assets, liability and capital, are connected by a fundamental relationship called balance sheet equation, sometimes called simply the accounting equation.
The two sides of the accounting equation must be equal.
According to the accounting equation, a firm is assumed to pos-sess its assets subject to the rights of the creditors and owners.
To meet with the demands of the developing private capital economy, reform has to be implemented in accounting equation, financial management objectives and distribution system.
Fundamental accounting equation
The accounting equation reflects the relationship among assets, liabilities, and owner's equity.
Consideration with calculating cash flow from operations--starting with basic accounting equation;