BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Detailed explanation-1: -The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.
Detailed explanation-2: -Simply, Capital+Liabilities=Assets. Was this answer helpful?
Detailed explanation-3: -What Are the 3 Elements of the Accounting Equation? The three elements of the accounting equation are assets, liabilities, and shareholders’ equity. The formula is straightforward: A company’s total assets are equal to its liabilities plus its shareholders’ equity.
Detailed explanation-4: -Balance sheet Based on the basic accounting equation, or balance sheet equation [Assets = Liabilities + Equity], the balance sheet provides a snapshot of a business’s assets, liabilities, and equity.