Wednesday, February 27, 2019
Basic Accounting Equation
The basic accounting comparability upon which the final accounts are score encompasses the following Assets minus Liabilities = self-will Interest The eternal sleep Sheet is the get word financial report that portrays the accounting equation, which will be utilized to imagine the accounting equation for the companies at hand. account statement Equation in McDonalds annual Report (2007) Assets Property, plant and equipment $20,984. 70 cardinal Current Assets $ 3,581. 90 angiotensin-converting enzyme thousand million Other Assets $ 4,825. 10 million get Assets $29,391. 70 million Liabilities Non-Current Liabilities (note 1) $ 9,613.40 million Current Liabilities $ 4,498. 50 million Total Liabilities $14,111. 90 million Ownership Interest $15,279. 80 million Note possession interest is be by total shareholders equity in the Balance Sheet. Note 1 computation of Non-Current Liabilities Long-Term Debt $7,310. 0 million Other Long-Term Liabilities $1,342. 5 million Deferred Ta xation $ 960. 9 million Non-Current Liabilities $9,613. 4 million Accounting Equation in Triarc Companies Incorporation (2007) Assets Non-Current Assets $1,284,313,000 Current Assets $ 170,254,000Total Assets $1,454,567,000 Liabilities Non-Current Liabilities (see note 2) $ 798,530,000 Current Liabilities $ 207,163,000 Total Liabilities $1,005,693,000 Ownership Interest $448,874,000 Note ownership interest is re submited by total stockholders equity in the Balance Sheet. Note 2 Computation of Non-Current Liabilities Long-Term Debt $711,531,000 Deferred Income $ 10,861,000 Minority interest in consolidated subsidiaries $ 958,000 Other Liabilities $ 75,180,000 Non-Current Liabilities $798,530,000Under both(prenominal) organisations the same accounting equation is utilised and the same components taken. This uniformity is central in accounting in order to ensure comparability. In admittance with the aid of such accounting equation a uniform structure is given to the Balance Sheet, which is an important fair for pertinent stakeholders to assess the financial position and stability of the organization. As one can note the assets scratch is classified among current and non-current assets, while the liabilities are divided between current and non-current liabilities.The subtraction between the two will results in the ownership interest. This basically comprises the equity capital of the company together with capital and revenue enhancement/capital reserves. Such features are present both for McDonalds quite a little and Triarc Companies Incorporation. In addition such features will also be present in the majority of limited liability companies set across the globe. The Balance Sheet is the main medium that one can utilize to mention the assets, liabilities and ownership interest of the companies.The additional notes in the financial statements serve as detail specification on certain assets and liability elements. However, the accounting equation being gen eric in its nature does not necessitate that one enters into such details. In this respect the Balance Sheet was the main medium utilised to put in practice the accounting equation for McDonalds Corporation and Triarc Companies Incorporation. Reference Weetman P. (2003). Financial and Management Accounting. Third Edition. New York prentice Hall.