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Financial accounting is a  specific branch of accounting  involving process of recording,summarizing,and reporting the myriad of transactions  resulting  from business
This are two primary types of financial accounting : The accrual method and the cash method
FUNCTIONS OF ACCOUNTING
All companies use accounting to report,track,execute and predict financial transactions.
The main functions of accounting are to store and analyse  financial  information  and oversee monetary transactions.
Accounting  is used to prepare  financial  statements for a company's employees,leader,and investors.
Accounting creates a fiscal history for any company. It is used to track expenditures from business operations  as well as a company's profits. Accountants use this information to prepare  financial  statements  used by businesses  professionals and government.
FUNCTION OF ACCOUNTING
1. Accounts payable:
Accounts playable functions to pay the company's bills.
2.pay roll:
Accountants  deduct  employee wages from company funds for paychecks.
3.Finacial Reporting:
Accountants use digital systems to store and calculate data.
4.Budgeting:
Accounting is in charge of setting  a company's budget.
5.Finacial Analysis:
Companies use accounting to perform regular analysis of how well the business  is performing .

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SUMMARY OF ACCOUNTING EQUATION BY ABDALLAH ANAS MUNIR 

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SUMMARY OF ACCOUNTING EQUATION BY ABDALLAH ANAS MUNIR 

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ACCOUNTING EQUATION
Accounting equation is also know as the balance sheet equation. It shows the relationship between the capital, Liabilities and assets of a business entity. It is the foundation
of the double entry accounting system.

EXAMPLE OF ACCOUNTING EQUATION

ASSETS: These are the tangible and intangible properties or possession of a business entity

FIXED ASSET: They are called tangible asset I,e they are physically seen and used for the running of the business.

CURRENT ASSETS: They are short term assets:these include cash in hand stocks inventory bills receivable debtors liquid assets (cash or assets that can easily be converted to cash examples cash at bank e.t.c

INTANGIBLE ASSETS: These are assets which are not physically seen but are also used for run

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       Abdullahi fawu   year 10 lagos                                                                                      What is the Accounting Equation? 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 EquityThis equation sets the foundation of double-entry accounting, also known as double-entry bookkeeping, and highlights the structure of the balance sheet. Double-entry accounting is a system where every transaction affects at least two accounts. For example, an increase in an asset account can be matched by an equal increase to a related liability or shareholder’s equity account such that the accounting equation stays in balance. Alternatively, an increase in an asset account can be matched by an equal decrease in another asset account. It is important to keep the accounting equation in mind when performing journal entries.Journal entries often use the language of debits (DR) and credits (CR). A debit refers to an increase in an asset or a decrease in a liability or shareholders’ equity. A credit in contrast refers to a decrease in an asset or an increase in a liability or shareholders’ equity.  As mentioned above, the accounting equation forms the basis for the balance sheet. The balance sheet is also sometimes referred to as the statement of financial position. The balance sheet is broken down into three major sections and their various underlying items: Assets, Liabilities, and Shareholder’s Equity.You can learn how to read a balance sheet and other financial statements in much great detail with CFI’s free reading financial statements course!ssets:  Accounts Receivable, Inventory, Property, Plant and Equipment Liabilities: Accounts Payable, Long-term Debt Shareholder’s Equity: Share Capital, Retained EarningsThe accounting equation shows the relationship between these items.Rearranging the Accounting Equation The accounting equation can also be rearranged into the following form:Shareholder’s Equity = Assets – LiabilitiesIn this form, it is easier to highlight the relationship between shareholder’s equity and debt (liabilities). As you can see, shareholder’s equity is the remainder after liabilities have been subtracted from assets. This is because creditors – parties that lend money such as banks – have the first claim to a company’s assets.For example, if a company becomes bankrupt, its assets are sold and these funds are used to settle its debts first. Only after debts are settled are shareholders entitled to any of the company’s assets to attempt to recover their investment.Regardless of how the accounting equation is represented, it is important to remember that the equation must always balance.Examples of the Accounting Equation For every transaction, both sides of this equation must have an equal net effect. Below are some examples of transactions and how they affect the accounting equation.CFI’s free accounting fundamentals course will help you better understand these examples!1. Purchasing a Machine with Cash Company XYZ wishes to purchase a $500 machine using only cash. This transaction would result in a debit (an increase in an asset) to Equipment (+$500) and a credit (a decrease in an asset) to Cash (-$500). The net effect on the accounting equation would be as follows:This transaction affects only the assets of the equation; therefore there is no corresponding effect in liabilities or shareholder’s equity on the right side of the equation.2. Purchasing a Machine with Cash and Credit Company XYZ wishes to purchase a $500 machine but it only has $250 of cash in its holdings. The company is allowed to purchase this machine with an initial payment of $250 but it owes the manufacturer the remaining amount. It would result in a debit (an increase in an asset) to Equipment (+$500), a credit (an increase in a liability) to Accounts Payable (+$250), and a credit (a decrease in an asset) to Cash (-$250). The net effect on the accounting equation would be as follows:This transaction affects both sides of the accounting equation; both the left and right sides of the equation increase by +$250.

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       Abdullahi fawu   year 10 lagos                                                                                      What is the Accounting Equation? 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 EquityThis equation sets the foundation of double-entry accounting, also known as double-entry bookkeeping, and highlights the structure of the balance sheet. Double-entry accounting is a system where every transaction affects at least two accounts. For example, an increase in an asset account can be matched by an equal increase to a related liability or shareholder’s equity account such that the accounting equation stays in balance. Alternatively, an increase in an asset account can be matched by an equal decrease in another asset account. It is important to keep the accounting equation in mind when performing journal entries.Journal entries often use the language of debits (DR) and credits (CR). A debit refers to an increase in an asset or a decrease in a liability or shareholders’ equity. A credit in contrast refers to a decrease in an asset or an increase in a liability or shareholders’ equity.  As mentioned above, the accounting equation forms the basis for the balance sheet. The balance sheet is also sometimes referred to as the statement of financial position. The balance sheet is broken down into three major sections and their various underlying items: Assets, Liabilities, and Shareholder’s Equity.You can learn how to read a balance sheet and other financial statements in much great detail with CFI’s free reading financial statements course!ssets:  Accounts Receivable, Inventory, Property, Plant and Equipment Liabilities: Accounts Payable, Long-term Debt Shareholder’s Equity: Share Capital, Retained EarningsThe accounting equation shows the relationship between these items.Rearranging the Accounting Equation The accounting equation can also be rearranged into the following form:Shareholder’s Equity = Assets – LiabilitiesIn this form, it is easier to highlight the relationship between shareholder’s equity and debt (liabilities). As you can see, shareholder’s equity is the remainder after liabilities have been subtracted from assets. This is because creditors – parties that lend money such as banks – have the first claim to a company’s assets.For example, if a company becomes bankrupt, its assets are sold and these funds are used to settle its debts first. Only after debts are settled are shareholders entitled to any of the company’s assets to attempt to recover their investment.Regardless of how the accounting equation is represented, it is important to remember that the equation must always balance.Examples of the Accounting Equation For every transaction, both sides of this equation must have an equal net effect. Below are some examples of transactions and how they affect the accounting equation.CFI’s free accounting fundamentals course will help you better understand these examples!1. Purchasing a Machine with Cash Company XYZ wishes to purchase a $500 machine using only cash. This transaction would result in a debit (an increase in an asset) to Equipment (+$500) and a credit (a decrease in an asset) to Cash (-$500). The net effect on the accounting equation would be as follows:This transaction affects only the assets of the equation; therefore there is no corresponding effect in liabilities or shareholder’s equity on the right side of the equation.2. Purchasing a Machine with Cash and Credit Company XYZ wishes to purchase a $500 machine but it only has $250 of cash in its holdings. The company is allowed to purchase this machine with an initial payment of $250 but it owes the manufacturer the remaining amount. It would result in a debit (an increase in an asset) to Equipment (+$500), a credit (an increase in a liability) to Accounts Payable (+$250), and a credit (a decrease in an asset) to Cash (-$250). The net effect on the accounting equation would be as follows:This transaction affects both sides of the accounting equation; both the left and right sides of the equation increase by +$250.

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Summary of accounting equation by Ahmad Musa

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Summary of accounting equation by Ahmad Musa

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The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business. It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.

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Ahmad Rabiat
1. What is accounting equation?
Accounting equation is also known as balance sheet equation which shows the relationship between the capital, liabilities and assets of a business entry.

2. State the meaning of assets liabilities and capital.
Assets: is the properties belongings to a business entity.
Liabilities: are the due which a business has to pay People in the cause of the business.
Capital: is the amount of money used for starting business.

3. Calculate the missing item from a given equation.
Assets=capital+liabilities
Capital=asets_liabilities
Liabilities=assets_capitals

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Khhadijah abdulkareem
Accounting is the process of recording, classifying, selecting, measuring, analysing, interpreting, and communicating financial accounting

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WELL DONE DATTI. YOU DID WELL.
MEANING OF ACCOUNTING EQUATION

Why Is the Accounting Equation Important? The accounting equation captures the relationship between the three components of a balance sheet: assets, liabilities, and equity. All else being equal, a company's equity will increase when its assets increase, and vice-versa.
EXAMPLE OF ACCOUNTING EQUATION

Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses. Owner's equity = Assets - Liabilities. Net Worth = Assets - Liabilities.

THANK YOU I HOPE YOU LIKED IT SIR

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Summary of accounting equation by Brian Ojiah
Accounting equation is also known as balance sheet equation,it shows the relationship between the capital, liabilities and assets of a business entity.
The formula to calculate accounting equation is
Formula=assets =capital+liabilities
Assets are the tangible or intangible properties or possession of a business entity. They include:
1. Fixed assets: they are the tangible assets, they are physically seen or used for running the business. E.g vehicles.
2. Intaginble assets: they are assets which are not physically seen. E.g  goodwill
3. Current assets: they are short term assets. E.g cash at bank.
Capital is the amount of money used for starting the business.
Labilities are the dues which the business has to pay people the cause of the business. E.g creditors loan .

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Summary of accounting equation by Maximilian Ayo 

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Summary of accounting equation by Maximilian Ayo 

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It is also know as balance sheet equation.It shows the relationship between the capital, liabilities and assets of a business entity. It is the foundation of the double entry accounting system.
Formula: Assets= capital+liabilities
Assets : these are the tangible and intangible properties or possession of a business entity.There are different types of assets . They include:
Fixed assets: they are called tangible assets i.e they are physically physically seen and used for the running of the business.
Intaginble assets :these are assets which are not physically seen but are also used for the running of the business.
Current assets: they are short term assets.
Capital:it is the amount of money used for starting of a business.
Liabilities: these are the dues which a business has to pay people in the cause of the business.

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What Is Financial Accounting? Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.

There are two primary types of financial accounting: the accrual method and the cash method. The primary difference between the two types of financial accounting in the timing in which transactions are (or are not) recorded.

Functions of accounting
All companies use accounting to report, track, execute and predict financial transactions. The main functions of accounting are to store and analyze financial information and oversee monetary transactions. Accounting is used to prepare financial statements for a company's employees, leaders, and investors. Accounting also functions to ensure the payment of funds into and out of a company.

Accounting creates a fiscal history for any company. It is used to track expenditures from business operations as well as a company's profits. It can also be utilized to predict financial success and the future needs of a company to create budgets and take advantage of new growth opportunities. Accountants use this information to prepare financial statements used by business professionals and government officials

FUNCTIONS OF ACCOUNTING

Business Costs and Revenue
An important function of accounting is to track business spending in relation to income. Just like managing your personal finances, accountants record expenses and payments to keep an accurate and up to date record of the company's funds.

Accounts Receivable
Proper accounting ensures the company receives any payment they are due. An accountant tracks the profits of a business to ensure that revenue is continually flowing into their bank account.

Accounts Payable
Accounts payable functions to pay the company's bills. They ensure the business pays for any money they owe and check that it is a legitimate charge. They also help set the due dates for payments so a company can best manage their own funds based on when money is coming in.

Payroll
Accountants deduct employee wages from company funds for paychecks. They are also in charge of managing employee benefits if they are paid out of an employee's income. Accounting may help decide how employees are compensated for their work based on how wages affect the company's profits.

Financial Reporting
Accountants use digital systems to store and calculate data. If a company is publicly owned, it must also prepare both quarterly and yearly reports for shareholders detailing the assets, profits and losses of the business. Privately-owned companies also utilize fiscal reports like these to understand the financial resources of their firm.

Financial Analysis
Companies use accounting to perform regular analysis of how well the business is performing. Either an outside consultant or internal personnel will look at the business as a whole to determine what functions can be made more efficient based on financial outcomes. They may suggest changes to employee departments or streamlined costs for production to reduce waste.

Taxes and Compliance
A business must comply with government laws and standards from the Internal Revenue Service and the Securities and Exchange Commission, among other regulations. States also enforce monetary guidelines for businesses. Accounting is responsible for reporting the financial workings of the company and making sure they conform to all local and national laws and guidelines.

Budgeting
Accounting is in charge of setting a company's budget. They use financial data from the past as well as projections for future income to compose annual budgets. Accountants also prepare budgets for individual departments and special projects within the company.

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Financial accounting  is a specific branch of accounting  involving a procces of recording, supervising and reporting myriad of transmission  resulting from business  operations  over a period of time

USERS OF ACCOUNTING INFORMATION
International.                                                           External                             owners                                              Creditors and financial institution
Management.                                  Investors
Employees.                                    Customer                                                                                    Tax authorities and regulatory bodies
Government
Researchers
General public

BOOKKEEPING
BOOKKIPING IS A SYSTOMATIC recording  of business  transactions  on a daily basis in the appropriate  book

Definition: Bookkeeping is the process  of  recording  economic  events.white accounting is an accounting  system that identify record and communication the economic  event

History of accounting

The earliest accounting records were found over 7,000 years ago among the ruins of Ancient Mesopotamia. At the time, people relied on accounting to keep a record of crop and herd growth.

1.Bevelopment(pre to 1494):The period of the beginning  of civilization e.g stone age ,Exchange age, money age

2.pre analytical (1494to1800)during this period trade and commerce  expanded rapidly

3.Analitucal period(1800  1950)Basically the propagation  of modern accounting  began in this era

4.curent ormodern period (ongoin) During this period there was a great change  in the science of accounting

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At the end of the lesson students should be able to:
1. state the meaning of accounting equation
2. state the meaning of assets, liabilities and capital
3. calculate the missing item from a given equation

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read through this website to learn more about Accounting equation.

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The accounting equation is a basic principle of accounting and a fundamental element of the balance sheet. Assets = Liabilities + Shareholder's Equity

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A comprehensive note on Accounting Equation

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play this speed matching game on quizlet.com to know your dexterity on accounting equation.