Post by account_disabled on Mar 11, 2024 6:11:11 GMT
The in the Accounting Equation To find out the accounting equation you need to use the double entry system bookkeeping method. With the double entry system you will be able to see that the total value of the companys assets will be the same as the total liabilities and shareholders equity . in the accounting equation records all types of assets on the left side and liabilities and debts on the right. Using this type of bookkeeping will ensure that the accounting equation remains balanced. Because every transaction carried out by the company must involve at least two types of accounts.
Where on one side there is income on the other side there is expenditure. These expenses and income Job Function Email List can be in the form of money or goods. Limitations of the Accounting Equation Although the accounting equation will always show total assets and liabilities that are always balanced. The accounting equation is difficult to use as an indicator of how well the company is performing. The most important thing for investors is to know the companys performance to get increasing profits. It is difficult for investors to know a companys performance if they only rely on the accounting equation.
Various examples of accounting equation questions You need to understand well that the three elements in the accounting equation above are interrelated. In other words changes to one of these elements clearly affect the other elements. So what kind of influence is meant For more details you can pay attention to the following example of transaction analysis and recording in the accounting equation. PT. JKL purchased office stationery amounting to IDR in cash. This transaction clearly affects the companys financial condition because it reduces existing cash. However on the other hand the companys wealth also increased in the form of ownership of office stationery. Apart from buying office stationery PT. JKL also has to pay internet fees.
Where on one side there is income on the other side there is expenditure. These expenses and income Job Function Email List can be in the form of money or goods. Limitations of the Accounting Equation Although the accounting equation will always show total assets and liabilities that are always balanced. The accounting equation is difficult to use as an indicator of how well the company is performing. The most important thing for investors is to know the companys performance to get increasing profits. It is difficult for investors to know a companys performance if they only rely on the accounting equation.
Various examples of accounting equation questions You need to understand well that the three elements in the accounting equation above are interrelated. In other words changes to one of these elements clearly affect the other elements. So what kind of influence is meant For more details you can pay attention to the following example of transaction analysis and recording in the accounting equation. PT. JKL purchased office stationery amounting to IDR in cash. This transaction clearly affects the companys financial condition because it reduces existing cash. However on the other hand the companys wealth also increased in the form of ownership of office stationery. Apart from buying office stationery PT. JKL also has to pay internet fees.