Glossary Of Widespread Accounting Terms

An accountant examines economic records to check for accuracy and make certain folks and organizations are abiding by laws and regulations. The principle of objectivity implies that the accounting information should be verifiable and free from any bias. A business established as a sole proprietor will label equity as Owners Equity whereas a public firm is more likely to refer to this portion of the accounting equation as Shareholders Equity. The final version of the equation could also be referred to as the Balance Sheet equation as it represents the data presented on that financial statement.