Meaning of accounting equation
Every field of knowledge in the history of formal education has been through a revolution of its own. This has led to the present situation where scientific approach towards every subject has developed as the elementary consideration to decide its effectiveness.
In the same way, scientific studies were conducted in the field of accounting too. This research led to the innovation of ‘Accounting Equation’. The scientific study further revealed that accounting revolves around three terminologies. Even the accounting structure concentrates on these three terms. Further, these three terms are even inter-laced and inter-related. These three terms are-
- Assets
- Liabilities
- Capital
Links of Previous Main Topic:-
- Book keeping
- Meaning of gaap
- Origin of transaction
- Origin of transaction
- Source documents or vouchers
- Accounting voucher and its types
Links of Next Accounting Topics:-