Accounting equation
In accounting, accounting equation means assets = liabilities + equity. True after every single entry, not just at period end.
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- Lexicon
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Authority
This definition follows CON 8, Ch. 4, ¶E61.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
The lesson that teaches this
Accounting, 0 to 1 — a free course taught end to end on one month of one company, with the spreadsheet exercises to work it yourself.
Accounting equation, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
The eleven continuous assertions — entry balance, accounting equation, subledger ties, schedule ties, roll-forward continuity, cash tie, retained earnings, intercompany, numbering, period integrity, orphans.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- balance sheet formula
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
6Statements
Family specTerms this one depends on
Also in Foundations
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.