
Concept explainers
The assets, liabilities and equity relation, are known as the accounting equation. Assets are the resources of company and that increase as business expand whereas liabilities are the burden on company that has to pay in future; Equity means the owner claim on assets. An accounting equation represent the assets of the company are equal to the liabilities and equity of the company.
In can be represented as follow,
Net Income:
Total earning of the company is called net income of the company. When the total expense deducted from the total revenue than the resultant is net income or net loss.Net profit of the company is also called net profit. The investor can take a decision on the basis of net income of the company. If net income is more the investor attract to the company.
1.
To identify: The effect of transactions on the accounting equation.
2.
The net income of the company.

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Chapter 1 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
- Critically analyse the role of financial reporting in investment decision-making,emphasizing the qualitative characteristics that enhance the usefulness of financialstatements. Discuss how financial reporting influences both investor confidence andregulatory decisions, using relevant examples.arrow_forwardHelp need!!arrow_forwardAnswer please correarrow_forward
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- Need answerarrow_forwardDefine research methodology in the context of accounting theory and discuss theimportance of selecting appropriate research methodology. Evaluate the strengths andlimitations of quantitative and qualitative approaches in accounting research.arrow_forwardCritically evaluate the progress and challenges in achieving a single set of globalaccounting standards. Discuss the benefits and drawbacks of globalization inaccounting, providing relevant examples.arrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
