Accounting Equation
The 'basic accounting equation' is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.
In a corporation, capital represents the stockholders' equity.
Read more about Accounting Equation: In Practice, Expanded Accounting Equation, Balance Sheet
Famous quotes containing the words accounting and/or equation:
“I, who am king of the matter I treat, and who owe an accounting for it to no one, do not for all that believe myself in all I write. I often hazard sallies of my mind which I mistrust.”
—Michel de Montaigne (1533–1592)
“Jail sentences have many functions, but one is surely to send a message about what our society abhors and what it values. This week, the equation was twofold: female infidelity twice as bad as male abuse, the life of a woman half as valuable as that of a man. The killing of the woman taken in adultery has a long history and survives today in many cultures. One of those is our own.”
—Anna Quindlen (b. 1952)