GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost Concept
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Matching Concept
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Business Entity Concept
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Money Measurement Concept
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Detailed explanation-1: -The accounting equation represents the relationship between the assets, liabilities and capital of a business and it is fundamental to the application of double entry bookkeeping where every transaction has a dual effect on the financial statements.
Detailed explanation-2: -Accounting equation is an expression of relationship among Assets, Liabilities & Capital in a business.
Detailed explanation-3: -The accounting equation is a basic principle of accounting and a fundamental element of the balance sheet. The equation is as follows: Assets = Liabilities + Shareholder’s Equity.
Detailed explanation-4: -According to accounting equation, the value of assets in a business is always equal to the sum of the value of liabilities and capital introduced by the owner into the business.