Kategoria: Bookkeeping

The equity section of the balance sheet shows the company’s retained earnings, which are the profits that the company has earned and retained over time. The Opening Balance Equity account is used to ensure that the company’s retained earnings are accurate and up-to-date. In case the balances don’t match, it can lead to lingering balance,…
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The accounting equation equates a company’s assets to its liabilities and equity. This shows all company assets are acquired by either debt or equity financing. For example, when a company is started, its assets are first purchased with either cash the company received from loans or cash the company received from investors. Thus, all of…
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