Accounting Equation All Concepts & Questions | ONE SHOT | Class 11 Revision Series | CA Parag Gupta
CA Parag Gupta・2 minutes read
The chapter revised in 15 minutes covers the Accounting Equation, stating that total liabilities equal total assets, including basic transactions and special transactions like prepaid expenses and depreciation, with practice questions on applying formulas and calculating closing capital and assets. Prepare for the next chapter by trying two questions independently on basic concepts and special transactions.
Insights
- The Accounting Equation is a fundamental concept in accounting, stating that total liabilities must equal total assets, forming the basis for understanding financial transactions and balances.
- Special transactions in accounting, such as prepaid expenses, outstanding expenses, accrued income, and depreciation, have distinct impacts on the components of the Accounting Equation, highlighting the complexity and nuances involved in financial accounting practices.
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Recent questions
What is the Accounting Equation?
Assets = Liabilities + Capital
How do prepaid expenses affect the Accounting Equation?
Prepaid expenses reduce cash but add to assets.
What is the impact of accrued income on the Accounting Equation?
Accrued income increases assets and capital.
How does depreciation affect the Accounting Equation?
Depreciation decreases asset value and capital.
What formulas are commonly used in accounting practice?
Assets = Liabilities + Capital, Profit = Revenue - Expenses
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