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

PROFESSIONAL INVOICE is an invoice associated with professional services rendered, i.e. medical, legal or accounting services. See SERVICE INVOICE and PRODUCT INVOICE.

SMA see SPECIAL MEMORANDUM ACCOUNT.

Suggest a Term

Enter Search Term

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