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:
“At the crash of economic collapse of which the rumblings can already be heard, the sleeping soldiers of the proletariat will awake as at the fanfare of the Last Judgment and the corpses of the victims of the struggle will arise and demand an accounting from those who are loaded down with curses.”
—Karl Liebknecht (1871–1919)
“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)