3 ms·

I know what you're saying, but I think it's easier to conceptualize if you write the equation: Assets = Liabilities + Equity The other way lends credence to t

by PakG1 8y ago

I know what you're saying, but I think it's easier to conceptualize if you write the equation: Assets = Liabilities + Equity The other way lends credence to the thought that an increase in liabilities requires a decrease in equity. Without knowing how journaling works, I think such an error would actually be quite logical.

skookumchuck 8y ago
It's still an error. What would you think of a person who confidently made erroneous assertions about the relationship between Volts and Amperes? As V=IR is the most basic equation in electricity, A=L+E is the most basic equation in business. It's necessary to understand them in order to pontificate about them, instead of just making things up.