📝 One-liners · 66 cards
BALANCE SHEET EQUATIONS
What is the fundamental balance sheet equation?
Assets = Liabilities + Owner's Equity. This equation must always remain in balance after every transaction.
What does 'Assets = Liabilities + Capital' represent in accounting?
The fundamental balance sheet equation in double-entry system.
How does the extended accounting equation differ from the basic equation?
The extended equation is Assets = Liabilities + Capital + Revenue - Expenses - Drawings, incorporating income statement elements into the equity component.
What is the accounting equation when a new business is started with cash capital?
Assets (cash) equal Capital with zero liabilities initially.
🔒
Unlock 66 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for BALANCE SHEET EQUATIONS.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days