Accounting Equation: Accounting’s Underlying Conceptual Framework
Dr. Larissa von Alberti-Alhtaybat
Vice Dean of Programs, Associate Professor of Accounting
Since the inception of double book-keeping in the Middle Ages, analyzing economic events from an accounting perspective takes place on the basis of a carefully balanced equation. Equation analysis provides a comprehensive overview of an organization’s financial state, both for financial and non-financial managers. Various examples will demonstrate the insights that can be derived from such analysis.