Basic Accounting Equation

The basic report equation upon which the final accounts are develop encompasses the following Assets minus Liabilities = Ownership Interest The Balance Sheet is the key financial report that portrays the explanation equation, which will be utilized to compute the accounting equation for the companies at hand. accountancy Equation in McDonalds Annual Report (2007) Assets Property, plant and equipment $20,984. 70 jillion Current Assets $ 3,581. 90 million Other Assets $ 4,825. 10 million Total 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 denounce ownership interest is represented 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 Taxation $ 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 represented 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 organisations the same accounting equation is utilised and the same comp wizardnts taken. This uniformity is important in accounting in order to see to it comparability. In addition with the aid of such accounting equation a uniform structure is give to the Balance Sheet, which is an important ordinary for pertinent stakeholders to as sess the financial position and stability of the organization. As one bottom of the inning note the assets section 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 detonating device of the company together with capital and revenue/capital reserves. Such features are present both for McDonalds Corporation and Triarc Companies Incorporation. In addition such features will also be present in the mass of limited liability companies set across the globe. The Balance Sheet is the main medium that one can utilize to identify the assets, liabilities and ownership interest of the companies.The additional notes in the financial statements serve as degree specification on certain assets and liability elements. However, the accounting equation being generic in its genius does not necessitate that one en ters 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). monetary and Management Accounting. Third Edition. New York Prentice Hall.