The governmental accounting version of the accounting equation
can be defined as (assets + deferred outflows of resources) - (liabilities + deferred inflows of resources) = net position.
At this point in a student's career, he or she is still getting accustomed to the basic accounting equation
as well as accounting terminology and procedures.
What Yolles does not understand is the accounting equation
for credit unions.
The accounting equation
serves as a kind of error-detection system: if at any point the sum of debits does not equal the corresponding sum of credits, an error has occurred.
The inevitable question that needs to be asked is why doesn't China's leadership--the political bureau of the standing committee (PBSC) of the Communist party, and the State Council of the Chinese government--move aggressively to boost domestic consumption, thereby changing the parameters of the accounting equation
, enhancing the government's popular appeal, complying with China's formal commitment to "rebalance" its international accounts, and modestly shrinking China's current account surplus?
The second chapter links the basic accounting equation
to the business entity's financing, investing and operating activities and their measurement and reporting.
So in the federal context, the basic accounting equation
typically is written like this:
y] into the growth accounting equation
(3), we find that the rate of output growth (as well as of consumption, investment, and capital growth) is equal to the rate of labor-augmenting technical progress.
Still, from the standpoint of the accounting equation
, the books were in balance.
That's the new accounting equation
for financial professionals' survival.
Accountants should be familiar with this method, because an accounting equation
forms its basis.
This is the most basic accounting equation