ECS2606
ASSIGNMENT 1 SEMESTER 2 2024
UNIQUE NO. 583390
DUE DATE: 15 AUGUST 2024 ECS2606 Assignment 1 Semester 2 2024 Unique number: 583390 Due date: 15 August 2024 Environmental Economics PREVIEW QUESTION 1 Fundamental Balance Principle: Discussion and Diagram 1. Fundamental Balance Principle: Discussion The Fundamental Balance Principle is a core concept in accounting and financial reporting. It asserts that the total of a company's assets must equal the total of its liabilities plus equity. This principle is based on the accounting equation: Assets=Liabilities + Equity UNISA@2024 QUESTION 1 Fundamental Balance Principle: Discussion and Diagram 1. Fundamental Balance Principle: Discussion The Fundamental Balance Principle is a core concept in accounting and financial reporting. It asserts that the total of a company's assets must equal the total of its liabilities plus equity. This principle is based on the accounting equation: Assets = Liabilities + Equity Key Points: 1. Assets: Resources owned by the company that provide future economic benefits. Examples include cash, inventory, and property. 2. Liabilities: Obligations that the company owes to external parties, such as loans and accounts payable. 3. Equity: The residual interest in the assets of the company after deducting liabilities. It includes shareholders' equity, retained earnings, and additional paid-
in capital. This balance ensures that every financial transaction is accurately recorded, maintaining the integrity of financial statements. When an asset is acquired, it is funded either by incurring a liability or by increasing equity. Similarly, when liabilities are settled or equity changes, the assets and corresponding entries adjust accordingly.
ASSIGNMENT 1 SEMESTER 2 2024
UNIQUE NO. 583390
DUE DATE: 15 AUGUST 2024 ECS2606 Assignment 1 Semester 2 2024 Unique number: 583390 Due date: 15 August 2024 Environmental Economics PREVIEW QUESTION 1 Fundamental Balance Principle: Discussion and Diagram 1. Fundamental Balance Principle: Discussion The Fundamental Balance Principle is a core concept in accounting and financial reporting. It asserts that the total of a company's assets must equal the total of its liabilities plus equity. This principle is based on the accounting equation: Assets=Liabilities + Equity UNISA@2024 QUESTION 1 Fundamental Balance Principle: Discussion and Diagram 1. Fundamental Balance Principle: Discussion The Fundamental Balance Principle is a core concept in accounting and financial reporting. It asserts that the total of a company's assets must equal the total of its liabilities plus equity. This principle is based on the accounting equation: Assets = Liabilities + Equity Key Points: 1. Assets: Resources owned by the company that provide future economic benefits. Examples include cash, inventory, and property. 2. Liabilities: Obligations that the company owes to external parties, such as loans and accounts payable. 3. Equity: The residual interest in the assets of the company after deducting liabilities. It includes shareholders' equity, retained earnings, and additional paid-
in capital. This balance ensures that every financial transaction is accurately recorded, maintaining the integrity of financial statements. When an asset is acquired, it is funded either by incurring a liability or by increasing equity. Similarly, when liabilities are settled or equity changes, the assets and corresponding entries adjust accordingly.
