Accounting Fundamentals
How do you find the basic accounting equation in an annual report?
I have a mission for the class and I'm looking 3 companies different, then write reports on all three. Part of the report should cover the basic accounting equation that the company used to obtain their annual report, but I do not know what my teacher means. as I know that assets = liabilities + owner's equity of expenditures, etc. etc., but I do not know how you find that the company has done? Thank you … I'm just trying to understand what the professor meant, you do not have to be sarcastic
Annual Reports rarely put into actual accounting equation. The equation is Assets = Liabilities + Equity. You can watch the balance of the declaration see equation held true. Look at total assets, total liabilities and total equity. Put them in the equation. If she is (she) you have proof of the equation is valid for this company.
Fundamentals of Accounting
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