Unit 5 question

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
I've just started the Unit 5 book (I'm using the FTC books) and am confused with question 1 on the key techniques questions for chapters 1-3. It's basically asking to produce the accounting equation. But as far as I can see this hasn't even been covered yet in the study material, it's talking about ownership interest, which means nothing to me, I've just re read the first three chapters and I can't find information on this anywhere. Am I going mad? Or did I miss out a big chunck in Foundation that explained all of this?<BR><BR>Michele

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 5 question

    Hi<BR><BR>The accounting equation is assets minus liabilities equals capital. The balance sheet produces this information, showing the true worth of a business.<BR><BR>Hope this helps<BR><BR>Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 5 question

    Ownership interest = assets - liabilities<BR><BR>ie. the owner's interest in the busines.

Categories

Privacy Policy