Asked by
Kianna Smith
on Nov 14, 2024
Verified
The basic accounting equation states that Assets = Liabilities.
Basic Accounting Equation
Represents the foundation of double-entry bookkeeping, stating that assets equal liabilities plus equity.
Assets
Resources owned by a business that are expected to provide future economic benefits.
Liabilities
Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.
- Gain insights into the effects of financial transactions on the core accounting equation.
Verified Answer
BC
Learning Objectives
- Gain insights into the effects of financial transactions on the core accounting equation.