Fundamental Accounting Equation and Double Entry Principle

• Assets +Expense = Liabilities + Shareholders’ Equity + Revenue. Liabilities = Equity = Net Worth. Revenue – Expense = Income. Statement of Retained Earnings or Shareholders’ Equity Statement. Total Equity = Common Par Stock Issued + Paid In Capital + Retained Earnings. Current Ratio: = Current Assets / Current Liabilities. Quick/Acid ... ................
................