Accounting basic questions

label Accounting
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Questions about the balance sheet:

a)      What is the accounting identity (or called basic accounting equation)?

b)      What is the implication of the accounting identity for the numbers on a balance sheet?

c)      What is the difference between the income statement and balance sheet in regards to timing?

Oct 29th, 2015

Thank you for the opportunity to help you with your question!

a]Accounting identity is a statement that must remain and reveal the truth no matter the changes. the equation is assets= liablities + capital.

b]it the balance sheet the accounting identity shows that assets = liabilities + capital [equity ].

the balance sheet needs to balance off .

c]a balance sheet reports and it shows a particular specific date while an income statement is prepared periodically especially annually .

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 29th, 2015

Thank you so much, you are so awesome.

Oct 29th, 2015

thank you too, welcome

Oct 29th, 2015

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