Briarcliffe Blogs

Why the Basic Accounting Equation Is the Foundation of Your Accounting Degree

August 14, 2012 General, Bethpage 0 Comments

Accounting Degree ProgramsYou’ve heard that the basic accounting equation is central to your degree. It’s the simple equation, Assets = Liabilities + Equity. But did you know that you could be using this basic equation for the rest of your educational and professional life? Learn more about how this easy equation can rule an accountant’s future.

It Affects Everything

If you were told that the basic accounting equation is important, that was an understatement. The above equation is part of every business transaction. In any transaction, at least two parts of the equation are affected. This means the equation should always be in balance. When businesses keep track of their transactions with the basic accounting equation, they can know the value of their various assets, liabilities, and equities at all times.

The Equation and Your Education

Now you understand that the basic accounting equation is vital to all accounting procedures. But it’s fairly simple; how can it affect your whole education? Balancing the equation isn’t always easy to understand. Much of your accounting education can be spent learning the different ways the equation can be balanced. Here are some complications you could encounter:

  • Different types of equity (owner’s, stockholder’s, etc.)
  • Interest, tax, wages, and loan liabilities
  • Double entry accounting

It can always be helpful to brush up on your basic accounting equation knowledge so you have a good understanding of its variations and complications. The equation plays a role in all parts of accounting, and accounting students who have a good grasp of it can be better prepared for future accounting positions.

If you’re looking for a focused and dedicated accounting education, learn more about a dynamic accounting degree program.

Briarcliffe College cannot guarantee employment or salary.


What do you think?




Terms and Conditions

By providing your mobile number, you agree to receive text messages from Briarcliffe College via its mobile text message provider.  You may opt out of receiving messages by texting the word STOP to 94576, or simply reply with the word STOP to any text message you receive from Briarcliffe College.

While CEC or its mobile text message provider will not charge end users for receiving/responding to promotional messages, depending on the terms of your mobile phone plan, you may incur a cost from your mobile service carrier to receive and respond to any promotional text messages (standard messaging and data rates/fees and other charges may apply).  Charges will appear on your mobile phone bill or will be deducted from pre-paid amounts.  Current participating/supported carriers are: Alltel, AT&T, Boost, Cellcom, Cellular One, Cellular South, Cincinnati Bell, Cricket, Element Wireless, Golden State Cellular, iWireless, Metro PCS, Nextel, nTelos, Plateau Wireless, Sprint, T-Mobile, US Cellular, Verizon Wireless, Viaero Wireless, Virgin, and more.