Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of accounting equation

Definition of

accounting equation

Accounting

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

  • Cultural Changes in External Auditing

    Best Practice

    approach in which accounts are classified by their nature as real, personal, or nominal, while countries like the United States and Canada use the accounting equation approach in which the balance sheet must reconcile, i.e. Assets = Liabilities + Equity. Accounts are classified as assets, liabilities
    By Jyothi Manohar

  • The Human Value of the Enterprise

    Best Practice

    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
    By Andrew Mayo

  • Interdependence of National and International Markets: The Foreign Information Transmission (FIT) Model

    Best Practice

    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
    By Boulis Ibrahim, Janusz Brzeszczynski

  • Nominal and Real Interest Rates

    Calculations

    Finally, the effective interest rate (sometimes known as the annual equivalent rate, or AER) is a rate that takes account of the impact of compounding.

More

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.

Back to top

Related

Most Viewed

Recommended

Latest

 
QFINANCE www.qfinance.com