The accounting equation reflects the relationship among assets, liabilities, and owner"s equity.
會計等式反映了資產、負債和業主權益之間的關係。
The two sides of the accounting equation must be equal.
會計等式的左右兩邊必須相等。
1.Assets = Liabilities + Stockholders’ Equity
2.Two sides of equation must always stay in balance
3.Assets
- Economic resources owned by a company that are expected to benefit future operations
4.Liabilities
- Present obligations of a business to pay cash, transfer assets, or provide services to other entities in the future
- Represent claims of creditors to the assets of the business
5.Stockholders’ Equity
- Represents the claims of the owners of a corporation to the assets of the business
The accounting equation reflects the relationship among assets, liabilities, and owner"s equity.
會計等式反映了資產、負債和業主權益之間的關係。
The two sides of the accounting equation must be equal.
會計等式的左右兩邊必須相等。
1.Assets = Liabilities + Stockholders’ Equity
2.Two sides of equation must always stay in balance
3.Assets
- Economic resources owned by a company that are expected to benefit future operations
4.Liabilities
- Present obligations of a business to pay cash, transfer assets, or provide services to other entities in the future
- Represent claims of creditors to the assets of the business
5.Stockholders’ Equity
- Represents the claims of the owners of a corporation to the assets of the business