S: The Accounting Equation
FC: The Accounting Equation
1: Graphic Organizer Assets- Resources owned by a company Liabilities- the rights of the creditor are the debts of the business Owners Equity- rights of the owners Business transactions- is an economic event or condition or it results of operations Accounting Equation- A= L +OE Job aid- this is a job aid because many people who are in the profession of accounting use the accounting equation in their work. All of these are connected because assets are equal to liabilities plus owners equity.
2: Assets Assets are the resources that are owned by a company. Two types of assets, fixed assets and tangible assets.Fixed assets- are property plant and equipment Tangible assets – buildings real estate etc
4: Liabilities The rights of the creditor are the debts of the business Two types of liabilities, long term and current liabilities. Current Liabilities- supposed to be payed within a year. Long term liabilities- not expected to be payed within a year
6: OWNERS EQUITY
7: Business Transaction Is an economic event or condition that directly changes an entity’s financial condition or its result of operations.
8: THE ACCOUNTING EQUATION ASSETS = LIABILITES + OWNERS EQUITY
11: If the amount of assets is 65,000, and liabilities are 20,000 then how much is owners equity? | Owners Equity= 45,000. | A= L + OE 65,000= 20,000 +oe oe=45,000