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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MONETARY UNIT is the unit used to measure economic activity (e.g., U.S. $).

YANKEE CD is a Certificate of Deposit issued in the United States through the branch of a foreign bank, but denomi­nated in U.S. dollars.

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