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balance sheets-balancing (1 Viewer)
- Thread starter sly fly
- Start date
The strange part is in Business studies you don't actully have to know this, just take into account that it balances and A=L+OE.
It basically means that every asset is accountable as a liabilty or Equity, and transactions that occur affect both sides of the sheet. It's a thing called double entry accounting, and it has to do with debits and credits, and trust me you don't need to know that.
It basically means that every asset is accountable as a liabilty or Equity, and transactions that occur affect both sides of the sheet. It's a thing called double entry accounting, and it has to do with debits and credits, and trust me you don't need to know that.
Emily.
Pro-VSU
think about it as:
assets are the things the business has control over (i.e. inventory, buildings, land, cash etc.)
and liabilities and owners equities are the inputs that provided these assets....so its natural that the sum of these inputs would equal what they paid for
assets are the things the business has control over (i.e. inventory, buildings, land, cash etc.)
and liabilities and owners equities are the inputs that provided these assets....so its natural that the sum of these inputs would equal what they paid for