What is the accounting equation?  Why is this important to the practice of accounting?

  • Exercise 1-9A on page 40
  • Exercise 1-10A on page 40
  • Exercise 1-4A on page 38
  • Exercise 1-7A on page 39
  • Exercise 1-6A on page 39
  • Exercise 1-8A on page 39
  • Question 1: What is the accounting equation?  Why is this important to the practice of accounting?  Please provide an example of how the accounting equation works with recording transactions within a business.
  • Question 2: Is there a difference between bookkeeping and accounting? Discuss.
  • Question 3: Accounting reports past performance. How can this be useful when planning future operations?