accounting equation

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Accounting Equation

A brief equation describing the relationship between the assets and the liabilities of a company. In other words, the accounting equation describes how a company's resources relate to the persons or entities with claims on those resources. It is stated as:

Assets = Liabilities + Owners' Equity.

accounting equation

the idea that capital is equal to assets minus liabilities, and thus may be expressed as C = A – L. This may also be described as ‘the balance sheet identity’. See BALANCE SHEET.
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It can neither be ignored that behind all numbers and accounting equations, real people exist -- our citizens for that matter, who are the ones affected by the economic recession throughout the European countries.
According to the content of the accounting courses and expert opinions, there were four sections included in the pretest (enterprise and accounting, accounting information, basic accounting hypotheses, and accounting principles), and six sections in the posttest (accounting equations, accounting elements and accounts, accounting vouchers, daily journal, ledger, and trial balance).
Mr Raffarin said this month his job was 'to give the French people work' and not 'to present accounting equations and solve mathematical problems to please some bureau in another country'.
The background in engineering math has always helped him to understand accounting equations and theory.