Misty Charnesky-The Accounting Equation

Misty Charnesky-The Accounting Equation - compounded entry....

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Running head: THE ACCOUNTING EQUATION 1 The Accounting Equation Misty Charnesky XACC280 July 31, 2011 Mark Bull
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THE ACCOUNTING EQUATION 2 The Accounting Equation The accounting equation looks like this; Assets = Liabilities + Owners (Shareholders) Equity. An asset is the properties and resources owned. Such things as cash, property, and equipment are only a few examples. Liabilities are financial obligations such as loans and credit from suppliers. Equity is the assets left over after paying financial obligations, meaning the worth. Some things can be used in more than one specific function of the equation this is
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Unformatted text preview: compounded entry. A compounded entry would consist of using a loan and cash on hand where the loan would be inputted for liabilities and the cash for assets. One thing to remember is that each side of the equation should balance with the other. Answers to activity E1-5 ASSET LIABILITY OWNER (STOCKHOLDER) EQUITY Cash Accounts Payable Common Stock Cleaning Equipment Cash Note Payable Salaries (subtracted from retained earnings) Accounts Receivable...
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This note was uploaded on 09/05/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.

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Misty Charnesky-The Accounting Equation - compounded entry....

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