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The Accounting Equation

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The accounting equation
Kenneth Myers Sr.
ACC/300
March 19,2014
Harri Elornta

The accounting equation

The Accounting Equation
What is the accounting equation ? The accounting equation is, Assets = liabilities + owners’ equity. Each of these element assets, liabilities, owners equity has their own exclusive purpose within the accounting equation. Each side of the accounting equation should balance at all times. The balance sheet is where this equation is normally used.
Assets
Anything of value that a company owns including material goods property cash are considered to be an asset. More than a few types of assets exist, such assets are as follows: present, investments, capital, and intangible. The merging of a company's property and their cash will give you a company's total belongings. Current assets are assets with dollar amounts that frequently changing. Such possessions may consist of cash, inventory, raw materials, and raw resources. Investments can be owned by companies which may include securities such as stocks and bonds. Permanent thing are the company's capital assets that they may own. This also includes property, buildings, vehicles, and equipment. Additional Capital assets are items such as personal computers, televisions, appliances, and furnishings as long as they are being used and not being sold. Things that you can't tough are considered to be Intangible assets, and they consist of patents, copyrights, trademarks and other non-material assets that have value.
Liabilities
Any services monies that are owed to a company or a person are considered to be Liabilities. Their two the two types of liabilities they are, your current liabilities, current liabilities are usually paid within a calendar of fiscal year. Money owed to vendors, suppliers, workers, short-term loans, and additional bills are considered to be a liability.

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