ACCOUNTING EQUATION Definition

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ACCOUNTING EQUATION is a mathematical expression used to describe the relationship between the assets, liabilities and owners equity of the business model. The basic accounting equation states that assets equal liabilities and owners equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owners equity.

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CONSOLIDATED CAPITAL is the value of all money and other assets, on a consolidated basis, used directly in business operations.

APPRAISAL VALUE is an opinion of a assets fair market value, based on an appraisers knowledge, experience, and analysis of the asset class.

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