Acc equation

Amity Business School

Amity Business SchoolBBA, I semester

Financial Accounting -I

Nupur Agarwal

Accounting EquationFive groups of accounts

■ Assets are items of value owned/controlled by a business; examples are cash, inventories, buildings and motor vehicles.

■ Liabilities are amounts owed to people or to organisations outside of the business; examples are amounts owed to Creditors control for purchases, or to a bank for a loan, overdraft or mortgage.

■ Equity is represented by the business’s assets less its liabilities (or the amount that the business owes to the owner). Equity is the amount originally invested in a business plus extra cash introduced, plus profits and less losses and drawings of cash or inventories from the business by the owner.

■ Revenue items are the earnings of a business; examples are income from sales of trading stock, interest, commission, rent and discount received.

■ Expenses are outflows from a business; examples are payment for wages or salaries, purchases of trading stock, payments for advertising, freight, motor vehicles expenses and discount allowed.

Accounting equation

• The financial position of a company is measured by the following items:

• Assets (what it owns)• Liabilities (what it owes to others)• Owner’s Equity (the difference between assets and liabilities)• The accounting equation (or basic accounting equation)

offers a simple way to understand how these three amounts relate to each other.

• The Accounting Equation can be presented as:Assets − Liabilities = Equity. By simple transposition the Accounting Equation can also be shown as: 1. Assets = Liabilities + Equity (A = L + EQ)2. Assets − Equity = Liabilities (A − EQ = L).

• If a company keeps accurate records, the accounting equation will always be “in balance,” meaning the left side should always equal the right side. The balance is maintained because every business transaction affects at least two of a company’s accounts.

• For example, when a company borrows money from a bank, the company’s assets will increase and its liabilities will increase by the same amount. When a company purchases inventory for cash, one asset will increase and one asset will decrease. Because there are two or more accounts affected by every transaction, the accounting system is referred to as double entry accounting.

• A company keeps track of all of its transactions by recording them in accounts in the company’s general ledger. Each account in the general ledger is designated as to its type: asset, liability, owner’s equity, revenue, expense, gain, or loss account.

Practice Example

Acc equation

Business

Transcript of Acc equation

1 9 0 6 Pompe 1906 · Albero T.B. Acc. 38NCD4 Acc. 38NCD4 Acc. AISI 316Acc. AISI 431 Acc. AISI 431 Acc. AISI 316 Acc. 38NCD4 Albero T.M. Acc. AISI 431 Acc. AISI 431 Acc. AISI 316Acc.

ACC - Hunter Industries · 2017-03-02 · ACC Advanced Commercial Controller Owner’s Manual, Installation, and Programming Instructions for ACC and ACC Decoder Controllers ACC-1200

Accountancy (ACC) ACC ACC 211. Introduction to Financial ......Accountancy (ACC) ACC ACC 211. Introduction to Financial Accounting. 3 hours. Study of the basic principles, concepts,

SCHOOL OF BUSINESS · 2020-02-13 · ACC 201 Principles of Accounting I F ACC 202 Principles of Accounting II S ACC 201 ACC 305 Intermediate Accounting I F ACC 202 ACC 306 Intermediate

changed to Computer Science and Informatics (CSI) · acc acc 200 acc 2000 acc acc 210 acc 2100 acc acc 300 acc 3000 acc acc 301 acc 3010 acc acc 310 acc 3100 acc acc 311 acc 3110

Course Number Quick Reference 3 19 10€¦ · acc 001 0010 acc 010 0100 ... acc 406 4060 acc 407 4070 acc 408 4080 acc 411 4110 acc 495 4995 acc 497 4997 acc 498 4998 acc 499 4999

ACC Chemistry and the Use of Amines - acc …acc-usersgroup.org/wp-content/uploads/2015/01/08-ACC-Chemistry-and...Challenge of ACC Chemistry Control – Discussion of the fundamental

WHEREAS, ACC), specifically Chapter 9.08 ACC, contains ...

Course Descriptions - Walsh College...ACC 515 Auditing 3 Credits Prerequisites: MAC: ACC 502, ACC 503, ACC 506 and ACC 518; MAC for Accounting Graduates: ACC 503 and ACC 518; Undergraduate:

User Guide August, 2011 - Oakland Universitycatalog.oakland.edu/mime/media/11/1472/Catalog+User...ACC 210 - ACC 300 - ACC 301 - ACC 310 - ACC 311 - ACC 318 - ACC 320 - ACC 399 - ACC

ACC - Hunter Industries · Wasserverschwendung und Schaden verhindert werden, während die anderen ... BEISPIELE ACC-99D - PED ACC-1800 ACC-2400 ACC-3000 ACC-4200 BASISMODELL MIT

ACC REGISTERED LIST Sheet1 ACC Code ACC …...ACC REGISTERED LIST Sheet1 ACC Code ACC Name District Location ADDRESS Phone No. Email Id rj3047704 VIJAY KUMAR GOYAL Ajmer AJMER B-227,

Biscaya - WordPress.com · 2016. 1. 28. · Bass Acc. Acc. Acc. Acc. 1 G 2 3 4 D E Bass Acc. Acc. Acc. Acc. 1 2 3 4

BIRAGHI - Certened · Albero T.B. Acc. 38NCD4 Acc. AISI 431 Acc. AISI 431 Albero T.M. Acc. AISI 431 Acc. AISI 431 Acc. AISI 431 Pump case Cast iron G25 Bronze BZN7 Bronze B10 Cover

SH68F093...SH68F093 6 1.4. Registers System Registers Address Name Initial Value R/W Bit7 Bit6 Bit5 Bit4 Bit3 Bit2 Bit1 Bit0 00E0H ACC 00H R/W ACC.7 ACC.6 ACC.5 ACC.4 ACC.3 ACC.2 ACC.1

ACC Corrosion/FAC - acc-usersgroup.orgacc-usersgroup.org/.../BDooley-ACC-Corrosion-FAC1.pdf · ACC Corrosion/FAC A Perspective as Introduction ... Corrosion/FAC in ACC and The Consequences

Chemical equation & writing equation

ACC (ACC) | 1,562 - content.icicidirect.comcontent.icicidirect.com/mailimages/IDirect_ACC_Q1CY17.pdf · UltraTech Cement 0.2 15.4 0.0 19.0 ACC (ACC) | 1,562 Rashesh Shah ... by better

· ace acc X acc Z ace acc ; acc ; acc Z ace / sce / Created Date: 10/27/2014 3:57:20 PM

TRANSFER EQUIVALENCY GUIDE COMMUNITY ......ACC 120 3 ACC 199 ACC 150 3 ACC 199 ACC 201 3 ACC 324 Minimum grade of ‘C’ required ACC 202 3 ACC 325 Minimum grade of ‘C’ required