# The accounting equation

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• Study Notes

### Diploma in Business Management & Entrepreneurship - The accounting equation

• Topic Reviews
Turkey 09 April 2017
BabaJide Martins F.

Well understood! The accounting equation represents a state of balanced.

South Africa 09 April 2017
Morne V.

This is another strategy, which is useful when dealing with balance day adjustments. This particular approach emphasises the importance of recognising the dual effect of transactions on the accounting equation

Nigeria 09 April 2017
Sunday O.

The accounting equation

Uganda 09 April 2017
Odongo M.

Accounting -> The accounting equation The accounting equation The accounting equation This is another strategy, which is useful when dealing with balance day adjustments. This particular approach emphasises the importance of recognising the dual effect of transactions on the accounting equation. The accounting equation - The see saw effect The accounting equation represents a state of balance. Initially assets are equal to liabilities plus owner's equity (proprietorship). Once the business commences operations this equation extends to Assets + Expenses = Revenue + Liabilities + Owner's equity (proprietorship). This may be presented in the form of a playground see saw. If the see saw is to be fun it must be kept in balance. There must be equal weight at each end. The left hand side of the seesaw is the debit side and the right hand side is the credit side. Any decrease in the debit side of the seesaw must be matched by a decrease in the credit side, or an increase in the debit side. All changes must be of equal effect.

Nepal 08 April 2017
Manish K.

information is clearly given. No question.

United States of America 08 April 2017
Penelope M.

irt's simply a balance

Morocco 08 April 2017

What is the accounting equation?

United Arab Emirates 08 April 2017
Gloria N.

Any decrease in the debit side of the seesaw must be matched by a decrease in the credit side, or an increase in the debit side. All changes must be of equal effect.

Thailand 08 April 2017
Epie E.

clearly understood.maintaining balance in both sides of the equation.

Botswana 08 April 2017
Baseli Gloria S.

oK.

• Text Version

### Diploma in Business Management & Entrepreneurship - The accounting equation

Accounting - The accounting equation

The accounting equation

A+E=R+L+P

The accounting equation

This is another strategy, which is useful when dealing with balance day
adjustments. This particular approach emphasises the importance of
recognising the dual effect of transactions on the accounting equation.

The accounting equation - The see saw effect

The accounting equation represents a state of balance. Initially assets
are equal to liabilities plus owner\'s equity (proprietorship). Once the
business commences operations this equation extends to Assets + Expenses =
Revenue + Liabilities + Owner\'s equity (proprietorship).

This may be presented in the form of a playground see saw. If the see saw
is to be fun it must be kept in balance. There must be equal weight at each
end. The left hand side of the seesaw is the debit side and the right hand
side is the credit side. Any decrease in the debit side of the seesaw must
be matched by a decrease in the credit side, or an increase in the debit
side. All changes must be of equal effect.

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