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Definition of

accounting equation


formula relating assets, liabilities, and equity a formula in which a firm's assets must be equal to the sum of its liabilities and the owners' equity.

Related definitions of "accounting equation"

accounting equation - Related Articles
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    Our people are our most important asset. This frequent statement from chief executives is often received with justifiable cynicism. The problem is that people within an organization do not always experience decisions and policies in their everyday work life that support such a belief. The accountant
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    of measuring association mainly produced static estimates that reflect average values over time, even if the variables involved are incorporated with methodology that takes into account variations over time
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    Here we take the time value of money into account, i.e. is a discounting factor such that is the value of at time t.
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Definitions of ’accounting equation’ and meaning of ’accounting equation’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’accounting equation’ and other financial terms with our online QFINANCE Financial Dictionary.

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