Post by account_disabled on Mar 13, 2024 9:36:24 GMT
The in accounting is correct and appropriate. The following are several examples of the implementation of basic accounting equations in daily company finances. Profit and Loss Calculation The first step is to carry out and apply this equation in calculating the companys profit and loss. Again we remember the principles previously explained above regarding this basic equation where what needs to be seen is the total assets and liabilities that must be carried out by the company. Therefore it is very important to calculate the profits and losses received by the company based on these calculations.
The application of this is quite simple just try to calculate how many total assets the Buy Leads company owns as in the example above. Then record and add up all the obligations that must be paid by the company in full. If total assets are greater than total debts or liabilities then of course shareholders will receive profits in the form of excess equity. On the other hand if it turns out that the total assets are smaller than the total liabilities that must be paid by the company then at this point the share owners must absorb the losses incurred in the company.
Income and Expenditure Reporting The application of basic accounting equations is also needed when carrying out calculations in terms of reporting company income and expenses. This is to ensure that all expenses made by the company do not exceed the income received. This is the basic principle of the equation namely ensuring the company has healthy finances by reducing expenses as much as possible to less than income. Of course this income can be categorized as assets while expenses are basically all obligations that must be paid by the company to other parties. So it will be easy to group what is an asset and what is not. how much income and how much expenses.
The application of this is quite simple just try to calculate how many total assets the Buy Leads company owns as in the example above. Then record and add up all the obligations that must be paid by the company in full. If total assets are greater than total debts or liabilities then of course shareholders will receive profits in the form of excess equity. On the other hand if it turns out that the total assets are smaller than the total liabilities that must be paid by the company then at this point the share owners must absorb the losses incurred in the company.
Income and Expenditure Reporting The application of basic accounting equations is also needed when carrying out calculations in terms of reporting company income and expenses. This is to ensure that all expenses made by the company do not exceed the income received. This is the basic principle of the equation namely ensuring the company has healthy finances by reducing expenses as much as possible to less than income. Of course this income can be categorized as assets while expenses are basically all obligations that must be paid by the company to other parties. So it will be easy to group what is an asset and what is not. how much income and how much expenses.