This unit discusses the vitally important accounting equation: Assets = Liabilities + Owner's Equity + Revenue - Expenses - Draws.
Now Studying: The Accounting Equation
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Core Training Activities
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Multiple Choice Activity
Select the best match between unit terms and their definitions.
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Listening Comprehension Activity
Listen to short audio clips in English and then spell them correctly.
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Spelling and Recognition
Identify and spell a vocabulary term correctly given only the definition.
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Vocabulary Builder Activity
Students will learn the following key terms and phrases:
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Financial accounting is an area which can be explained simply by using the accounting equation, which is assets = liabilities + capital.
But what does that really mean? To understand the significance of the equation, first we must explore the meaning of the three words; assets, liabilities and capital. These terms are often used in accounting but can have very different meanings.
In general…
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Reading Comprehension Quiz
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Speaking Practice Activity
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There is some very complicated terminology in accounting so you should make sure you have a good dictionary.
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Many people choose to form a sole proprietorship as it is the simplest form of business entity.
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The board of management was delighted with the 15% rise in shareholder equity on the past year.
... and more sentences to practice.
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Writing Practice Activity
Improve your writing skills with guided essay questions and professional correction.
- Why might intangible assets be hard to quantify?
- Why is the accounting equation so important?
