GENERAL KNOWLEDGE

Detailed explanation-1: -The accounting equation states that a company’s total assets are equal to the sum of its liabilities and its shareholders’ equity. This straightforward relationship between assets, liabilities, and equity is considered to be the foundation of the double-entry accounting system.

Detailed explanation-2: -Capital + Liabilities = Assets. Was this answer helpful?

Detailed explanation-3: -The duality principle is commonly expressed in terms of fundamental Accounting Equation, which is as follows : Assets = Liabilities + Capital.

Detailed explanation-4: -The dual aspect concept indicates that each transaction made by a business impacts the business in two different aspects which are equal and opposite in nature. This concept form the basis of double-entry accounting and is used by all accounting frameworks for generating accurate and reliable financial statements.

Detailed explanation-5: -Assets = Liabilities + Shareholder’s Equity This equation sets the foundation of double-entry accounting, also known as double-entry bookkeeping, and highlights the structure of the balance sheet.