What is the accounting equation? what are all the components of the equations and can you please include examples?

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Accounting equation

There exists a very close relationship between assets, liabilities and net worth. The formula that establishes this relationship between assets, liabilities and net worth is commonly referred to as the Accounting equation. This equation can be referred to as the basic foundation of the double-entry system of accounting. It is a statement of equality between assets and liabilities. The accounting equation reads:
Assets = Liabilities + Owners' equity

The fundamental accounting equation is the back bone of the accounting and reporting system. It is central to understanding a key financial statement known as Balance Sheet. Basically it shows that all the assets are either financed by borrowings / liabilities or are contributed by the owners of the business / shareholders. This equation remains in balance for each transaction and holds at all times over the life of the business. Any accounting transaction has an equal effect on both sides of the equation or offsetting effect on the same side of the equation. The basic purpose of the equation is to arrive at the final component of equity or net worth. It is therefore also ...

Solution Summary

The solution examines the components of the accounting equation. What you can include in examples is given.

Please describe how the following transactions affect theaccountingequation:
1- Provide services on account
2- Purchase Inventory for Cash
3- Use Cash to pay down Accounts Payable
For each, please tell me if the following account increase, decrease or no change:
Assets, Liability and Owners Equity

Find an equation of the exponential function y=g(x) , whose graph passes through the 2 given points.
a) (0,5) (3,9)
b) (2,24) (4,8)
Please show how you got the answer.
And find a equation of the linear function y=f(x) for the same points.

Expanded AccountingEquation
For the following four cases, use the expanded accountingequation to compute the missing
quantity.
Assets Liabilities Capital Stock Retained Earnings
Case A $20,000 $ 8,000 A $ 3,500
Case B 16,000 B $ 5,000 2,000
Case C

See attached Excel spreadsheet.
"Y" is the dependent variable and the "X"'s are independent variables. Use MegaStat and its Regression capabilities to find the "best" equation that predicts Y based upon the X's. (Don't accept the first equation you find, try others also.) What do you notice in the regression analysis? Which v

An expanded version of theaccountingequation could be:
A + Rev = L + OE - Exp
A - L = Paid-in Capital - Rev - Exp
A + Exp = L + Beginning Paid-in Capital + Rev
A = L + Paid-in Capital - Rev + Exp

1) Find theequation of the line that is perpendicular to the line x-3y+16=0 and passes through the point (1,7).
2) Suppose the graph f(x) is given, describe how the graph of the function f(x-2)+3 can be obtained.

A) Find a vector equation for the line that passes through (1,-2,7) and is parallel to the line
x= 3+2t, y= -t, z= -1-t
B) Write a different vector equation for the line you found in part A...

How do you fine theequation of a line?
~Find theequation of each line described below. Show all subproblems.
a) The line through points (-1,4) and (2, 1)
b) The line through points (6,3) and (5,5)
c) The line with slope 1/3 through the point (0,5)
d) The line parallel to y= 2x-5 through point (1,7)