The components of the accounting equation cannot be transposed like all other equations. Doing so means completely changing rules that have been observed through generations of accountants. All financial statements are based on these rules. The only similarity with other equations is the equality of both sides of the expression. This equality is maintained throughout the accounting process by following certain rules in the application of debit and credit. Unless there are errors or omissions, these rules provide accuracy and consistency in recording transactions, resulting in information that presents fairly the financial position and performance of the enterprise.
Runtime Approx 90 mins (this complimentary course expires in three days); Learners Accounting students, entrepreneurs, non-accountant professionals; Recommended previous course Accounting Equation; Recommended next course Business Activities and Transactions.