THE ACCOUNTING EXCHANGE.
The accounting equation is based on the axiom that assets equal equities and that on the extensions of this axiom depends the recording of all business transactions. The accountant is obliged to determine whether the proprietors have obtained an increase from the possession or acquisition of assets during the accounting period. The accountant is thus dealing primarily with things, tangible or intangible, which have been acquired by the enterprise, and with the concomitant claim against the assets by a third party or by the proprietor. As a rule when a person is asked to take away from a given quantity he conceives of the operation as a negative one and the quantity to be affected as positive. This last precaution is suggested because many persons have agreed to the foregoing, but viewed erroneously a decrease of a proprietory interest as a negative operation. The principal thread of the discussion can be resumed by presenting the accounting equation in T-form. At this juncture one may, with reason, pause to indicate what may be termed the accounting "pons asinorum."
- DOI
- 10.2308/tar-8594488
- Volume
- 7 (4)
- Pages
- 294-300
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref