Like Driving a Car : Accounting Equation
I teach a number of courses in the Accounting diploma program, and as I was reading the description in the Mastery section on threshold concepts, the accounting equation came to mind. It is difficult to understand any topics in accounting without first understanding the accounting equation.
The component skills that are required to master this are understanding:
- the purpose of accounting is
- accounting principles and their purpose
- accounting concepts and their purpose
- financial statements and their purpose
- how to record transactions and normal account balances.
I created an image to understand the process of arriving at the accounting equation.
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Example for "Like Driving a Car : Accounting Equation":
https://bank.ecampusontario.ca/wp-content/uploads/2020/09/Accounting-Equation-Image.pdf
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