Accounting Equation Homework Help
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Any business transaction, whether monetary or cashless, will have an impact over its financial position. It will define a business’s market value after so and so period of time which is also called as financial year. A certain calculation is required at the end of financial year in order to achieve the profit and loss scenario. The profit will result in decision making or wither extra investments in business or maintenance. These calculations require specific skills and mathematical knowledge. In many business academies this knowledge is given and further practices by doing homework and assignments, these skills can be replenished. Our job is to provide Accounting equation homework help to students who are in need of calculative help. Our experts from accounting professional background help them to achieve good skills and knowledge in the same sectors.
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What are accounting equations?
As mentioned above, these are the mathematical models and terms that help a business to find out the revenue from its monetary transaction for a specified period of time. A financial position of a company or firm can be measured by accounting equations. In our Accounting equation homework help we define the following three terms responsible for the financial position of a company.
• Owner’s equities
The relationship between these three terms is established from accounting equations. Our Accounting equation homework help team experts suggest that, the accounting equation for a sole proprietorship can be resembled to
Assets = Liabilities + Owner’s Equity
And the accounting equation for a corporation can be resembled to
Assets = Liabilities + Stock holder’s Equity
1. Assets are a firm’s resources that is owned by them like cash, accounts, inventory, insurance etc. from the above mentioned accounting equation we can confirm that the total assets of a firm can be denoted by the summation of all the liabilities they got and the owner’s or stockholder’s equity.
2. Liabilities are a firm’s obligations or the amounts that the firm owns on it. All the loans to be paid, salaries to be distributed etc. comes under liabilities. There are two ways, a liability can be seen
a. As the claims against a firm’s assets by all the creditors
b. A source for a firm’s assets including stockholder equity
A stockholder’s equity can be defined as the remains of assets when reduced from liabilities.
3. Owner’s or stockholder’s equity is defined as the money invested in the firm by the sponsors or owners along with the cumulative net income of the firm that has not been distributed as the dividend among the stockholders.
Example for accounting equation
Our Accounting equation homework help team experts have prepared an example that a student can refer in order to get a demonstration of their quality
Jaguar, the automobile company reported its annual balance sheet in august 2015. Jaguar had total current liabilities of $50 billion and total long-term liabilities of $60 billion. So, the total liabilities of $110 billion were calculated. Jaguar had a lump sum common stock worth $20 billion, remained earnings of $80 billion and separate stock holder equity of -$120 million. So, it had total shareholders’ equity of $20 billion, or $80 billion + $20 billion – $120 million. Certainly, it had a summation of assets of $230 billion, or $110 billion + $120 billion.
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