Xacc/280 Week 6 Accounting Analysis

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Accounting Equation Accounting equation is the basic formula in accounting. It means the foundation of double entry accounting. According to Shaun 2015, The accounting equation is: Assets = Liabilities + Owner’s Equity The equation will always balance. Assets are the resources of the company to start running a business. It can be tangible or intangible. Assets are divided by two categories, which are non-current assets and current assets. Non-current assets obtained for continuing use over long period of time that more than one year. For example, building, vehicles and so on. While current assets that likely to be changed within short term between one year. For example, bank, cash, trade-receivables and so on. Liability is company’s

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