they will seek new product so that supplier will be innovative to provide more to their customer.
Double Entry bookkeeping: Comes from two sides of an equation:PROPERTY= OWNERSHIPAccounting Values or Elements
A. Assets: defined as the economic resources which are owned by a business and are expected to benefit future operations.
B.Liabilities: debts or financial obligations of the business to its creditors and refer to the claims of creditors and refer to claims of creditors against the assets of the business.
C.Owner’s Equity-Known as the right or claims of the owner over the assets of the business.Analyzing business transactions using T-Accounts
Account: an accounting device used in summarizing the changes in the assets, liabilities and owner’s equity account caused by business transactions and events.
Ledger: Means group of accounts: it refers also to the book where the accounts are kept.
T-Accounts: This consists of two lines, one vertical and one horizontal, and resembles the letter T. The title of the account is written on the horizontal, ( Top) line. Increases and decreases in the account are entered on the different sides of the vertical line.
Name of the Account Account No.
Left Side Right Side
Debit Side Credit Side
Value Received Equals Value Parted with
What is the accounting equation? read more on:
What is the basic accounting equation read more on:
The correct answer among the various given choices is letter d. Adding total liabilities to total assets results in equity is not a true statement. It should be subtracting total liabilities to total assets results in the value of equity.Elements of Accounting Equation
There are 3 main categories of accounting equation that is found in the balance sheet of a company:AssetsLiabilitiesOwners' Equity / Shareholders Equity / Stockholders Equity
The accounting equation formula is;Assets = Liabilities + Owner's Equity
Further topics about assets and liabilities
What is the opposite of assets
For related topics about accounting equation