Accounting Equation Homework Help

Accounting Equation Homework Help

Accounting is a widely studied subject in different Universities situated at different countries. With the increase in number of business organization, the demand for accountant or accounting people is also increasing. However, the task of an accountant requires in-depth knowledge regarding the subject. We provide our special care to the students in this regard. Our special service to the students in accounting equation homework helps the students in securing higher marks in their examination. At the same time, with the help of our solutions or accounting homework, the students can learn the easy ways of accounting. We are 24X7 available to the students and as our service is available via online, students can communicate with us from any part of the globe.

What do you Mean by Accounting Equation?

Accounting equation denotes the basic demand of the business. We indicate accounting equation as Assets = Liabilities + Owner’s Equity. This means in a business organization, the assets must be equal to the sum total of liabilities and owner’s equity in a particular financial year. Accounting equation helps the management of the organizations to keep a balance between the assets and liabilities of the business. Identifying the accounting equation of a company is very important because it discloses the financial position of the company in a specific financial year. This accounting equation of the business organizations helps the investors in taking their investment decision. The same thing is also applicable in case of the creditors. Therefore, for a business organization it is very important to maintain the accounting equation properly.

What are the elements of accounting equation?

Mainly three basic elements are included in the accounting equation of a business. These elements are – assets, liabilities and owner’s equity. However, these basic three elements of accounting equation have also included some sub-elements. In case of the assets, the sub-elements are – cash, equipments, inventory, account receivable etc. and in case of the liabilities, the sub-elements are – account payable, creditors, bank overdrafts etc. The sub-elements of owner’s equity are – retained payable resources and the capital stock.

Why the students need to know about accounting equation?

Accounting equation is the primary need of a company and students are the future work force of the business organizations or companies. Therefore, in future, when the students will join any business organization or start their own business, they will need to run the business properly by identifying the financial position of the same. Hence, at that time, it will also be the basic need of them to know about accounting equation so that they can easily identify the actual financial position or performance of the business or company. Accounting equation will help them to take right strategy at right time. Therefore, the students must know how to identify the accounting equation of a company and how to analyze that equation.

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