accounting equation การใช้

• The accounting equation is the mathematical structure of the balance sheet.
• This is also accomplished using the accounting equation : Liabilities.
• Pertinent forms of the accounting equation for this discussion are shown below:
• The accounting equation serves as an error detection tool.
• Therefore, to balance the accounting equation the corresponding liability account is credited:
• Throughout the business's existence, the equity of the business will be the difference between its assets and debt liabilities; this is the accounting equation.
• :Keep in mind, the old accounting equation : Assets = Liabilities + Capital . ?! carrots?! 00 : 27, 6 March 2013 ( UTC)
• Since every business transaction affects at least two of a company s accounts, the accounting equation will always be  in balance,  meaning the left side should always equal the right side.
• The equation resulting from making these substitutions in the accounting equation may be referred to as the " expanded " accounting equation, because it yields the breakdown of the equity component of the equation.
• The equation resulting from making these substitutions in the accounting equation may be referred to as the " expanded " accounting equation, because it yields the breakdown of the equity component of the equation.
• Because each bookkeeping entry debits one account and credits another account in an equal amount, the double-entry bookkeeping system helps ensure that the general ledger is always in balance, thus maintaining the accounting equation:
• The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.
• *. . . that the existence of "'presupposition for the mathematical validity of both the accounting equation ( financial statements ) and the equality of gross value added and net output ( national accounts )?
• However all these accounts are all classified as one of the five types of accounts, therefore my entire business can be described in terms of its assets, expenses, liabilities, income and equity / capital ( see extended accounting equation ).
• In other words, according to the accounting equation, as the value of their primary asset ( homes ) fell, mortgage debt initially remained fixed, so equity also fell, causing the ratio of debt to equity ( a measure of leverage ) to rise.
• To determine whether one must debit or credit a specific account we use either the " accounting equation " approach which consists of five accounting rules or the " traditional approach " based on three rules ( for Real accounts, Personal accounts, and Nominal accounts ) to determine whether " to debit " or " to credit " an account.