accounting equation


Definition of accounting equation

1 : the equality of debits and credits as used in the double-entry system
2 : a statement of net worth as equal to assets minus liabilities

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First Known Use of accounting equation

1911, in the meaning defined at sense 1

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The first known use of accounting equation was in 1911

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Cite this Entry

“Accounting equation.” Dictionary, Merriam-Webster, Accessed 27 Jan. 2021.

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