The accounting equation represents a fundamental principle of accounting that states that a company’s total assets are equal to the sum of its liabilities and equity. It forms the basis of double-entry accounting, where every transaction results in a dual effect, ensuring balance sheet accuracy. T...

This is the most commonly used method of accounting for business transactions. The double-entry bookkeeping system can generate useful financial reports for business owners. Double-entry bookkeeping is an accounting method where a transaction is recorded using at least one debit and one credit in th...