Commerce Exam > Commerce Videos > Accountancy Class 11 > What is Accounting Equation?
What is Accounting Equation? Video Lecture | Accountancy Class 11 - Commerce
This video is part of 61 videos|147 docs|35 tests | Join course for free |
|
61 videos|147 docs|35 tests
|
FAQs on What is Accounting Equation? Video Lecture - Accountancy Class 11 - Commerce
| 1. What is the accounting equation? |  |
| 2. Why is the accounting equation important in financial statements? | |
Ans. The accounting equation is crucial because it forms the foundation for double-entry bookkeeping, ensuring that every financial transaction affects at least two accounts. It guarantees that the balance sheet is accurate and that the total resources of a business (assets) are funded by debts (liabilities) and owners' investments (equity).
| 3. How do you apply the accounting equation in practice? | |
Ans. To apply the accounting equation in practice, one must record every transaction in a way that maintains the balance between assets, liabilities, and equity. For example, if a company takes out a loan (increasing liabilities), it also gains cash (increasing assets), keeping the equation balanced.
| 4. What happens if the accounting equation does not balance? | |
Ans. If the accounting equation does not balance, it indicates an error in the accounting records. This could be due to incorrect entries, missing transactions, or miscalculations. It is essential to review the financial records to identify and correct discrepancies to ensure accurate financial reporting.
| 5. Can the accounting equation change over time? | |
Ans. Yes, the accounting equation can change over time as a business grows and its financial situation evolves. Changes in assets, liabilities, or equity due to new investments, loans, or profits will alter the equation. However, the fundamental relationship between these three components will always remain the same.
About this Video
2.4K Views
4.77/5
Rating
Apr 01, 2025
Last updated
Video Description: What is Accounting Equation? for Commerce 2025 is part of Accountancy Class 11 preparation.
The notes and questions for What is Accounting Equation? have been prepared according to the Commerce exam syllabus.
Information about What is Accounting Equation? covers all important topics for Commerce 2025 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for What is Accounting Equation?.
Introduction of What is Accounting Equation? in English is available as part of our Accountancy Class 11 for Commerce & What is Accounting Equation? in
Hindi for Accountancy Class 11 course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for What is Accounting Equation? Video Lecture | Accountancy Class 11 - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Accountancy Class 11.
Information about What is Accounting Equation?
Here you can find the meaning of What is Accounting Equation? defined & explained in the simplest way possible.
Besides explaining types of What is Accounting Equation? theory, EduRev gives you an ample number of questions to practice What is Accounting Equation? tests,
examples and also practice Commerce tests.
Related Searches
Objective type Questions
,Free
,past year papers
,practice quizzes
,Extra Questions
,What is Accounting Equation? Video Lecture | Accountancy Class 11 - Commerce
,Viva Questions
,Exam
,Sample Paper
,What is Accounting Equation? Video Lecture | Accountancy Class 11 - Commerce
,Semester Notes
,Summary
,shortcuts and tricks
,Important questions
,ppt
,video lectures
,MCQs
,study material
,What is Accounting Equation? Video Lecture | Accountancy Class 11 - Commerce
,Previous Year Questions with Solutions
,mock tests for examination
;
Study What is Accounting Equation? on the App
Students of Commerce can study What is Accounting Equation? alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the What is Accounting Equation?,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of What is Accounting Equation? is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup on EduRev and stay on top of your study goals
10M+ students crushing their study goals daily