Accounting Equation

The properties owned by a business are called assets and the rights or claims to the properties are referred to as equities. For every business, the sum of the rights to the properties is equal to the sum of properties owned. The relationship between the two may be expressed in the form of an equation. … Read more

Realization Principle of Accounting

Definition The realization principle of accounting revolves around determining the point in time when revenues are earned. The concept followed by the realization principle is that revenue is realized when the goods and services produced by a business are transferred to a customer, either for cash, an asset, or a promise to pay cash or … Read more