The accounting equation defines a company’s total assets as the sum of its liabilities and shareholders’ equity. It's the foundation of the double-entry accounting system.

What Is the Effect on a Fundamental Accounting Equation if Supplies Are Purchased on an Account?. ... you must prepare a journal entry that contains one debit and one credit.

Whenever you have a transaction in accounting, you must keep the equation balanced. Balancing the equation means you keep your debits equal to your credits. For example, assume you sell a widget ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

To better advise their clients, in-house counsel should understand key accounting principles and steps in the accounting cycle, including journal entries, the general ledger, trial balances ...

How a General Ledger Functions With Double-Entry Accounting . A general ledger is used by businesses that employ the double-entry bookkeeping method, which means that each financial transaction ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.