Basic Accounting: Formulas, Concepts, And Examples Of Their Equations



Basic accounting. Want to start a business? Let’s learn the basics of accounting first!

Basic accounting is one of the sciences that need to be mastered by a worker in the financial sector.

In addition, if you intend to start a business, there is nothing wrong with learning about this field so that you can monitor the company’s financial flows.

Well, in this article, ActivelyShare.com will discuss basic accounting concepts, formulas, and examples in a light and easy way. So, what are you waiting for? Let’s see!

Basic Understanding of Accounting

Accounting is a science related to recording, analyzing, and communicating transactions of a business entity with the aim of providing relevant information for interested parties in order to make a decision.

The basis of accounting is the basic thing related to the application of this knowledge which usually consists of equations, journaling, making balance sheets, to the presentation of financial statements. The final goal is to make reports related to financial conditions as the basis for making company decisions.

Basic Accounting Equations

One part of accounting is the basic equation. This formula describes the company’s ownership and debt that is used to project the capital of a company.

Usually, these components are expressed in the following form.

Assets = Liabilities + Equity

In addition to the formula formulated above, the basic accounting equation formula is as follows.


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