how do you find the fundamental accounting equation in an annual report?
i have an assignment for class and i have to research 3 different companies then write reports on all 3. Part of the report has to cover the fundamental accounting equation that the company used to get their annual report, but i don't know what my teacher means. like i know assets=liabilities+owner's equity -expenses, etc etc, but i don't know how you find out what the company did? thanks...
i'm just trying to figure out what the teacher meant, you don't have to be sarcastic
Annual reports rarely put in the actual accounting equation. The equation is Assets = Liabilities + Equity.
You can look at the balance sheet in the statement to see the equation held true. Look at the total assets, the total liabilities and the total equity. Put them in the equation. If it equals (it will) you have proof the equation holds for that company.
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