Balance sheet identity is an elementary equation which forms the basis for financial reporting and also becomes a reason for the accounting for each entry in two accounts.
The balance sheet identity states that the total amount of uses of funds is equal to the total amount of sources of funds which can be expressed as:
Assets = Liabilities + Owner's Equity
Search & Explore : Management Dictionary
Browse the definition and meaning of more terms similar to Balance Sheet Identity. The Management Dictionary covers over 7000 business concepts from 6 categories.
Related Business Content