ACCOUNTING EQUATION Definition

Bookmark and Share

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.

Learn new Accounting Terms

ABATEMENT, in general, is the reduction or lessening. In law, it is the termination or suspension of a lawsuit. For example, an abatement of taxes is a tax decrease or rebate.

DISPATCH, in shipping, is the amount paid by a vessels operator to a charterer if loading or unloading is completed in less time than stipulated in the charter party.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.