Asset valuation methods Asset valuation methods is the recording of assets at market value depends on the accounting framework being used. In general, assets are typically recorded at their historical cost or fair value, depending on the circumstances and accounting standards followed by an organization. Based on the historical cost principle, assets are initially… Read More »
Balance Sheet Equation Balance sheet equation also known as the accounting equation, is a fundamental principle of accounting that states that the assets of a business are equal to the sum of its liabilities and owners’ equity. Mathematically, it can be represent as: Assets = Liabilities + Owners’ Equity This equation is always in balance,… Read More »
Elements of Bookkeeping Website Link Elements of bookkeeping system: It also known as the double-entry accounting system, is a method of documenting financial transactions that involves recording each transaction in two separate accounts. The system consists of four elements: Assets: Assets are resources owned or controlled by a business that hold monetary value. Examples include cash,… Read More »