Here is where you get to explain in your own words what this relationship is between the income statement the balance sheet and the fundamental accounting equation. The accounting system allows us to use it throughout the life of the business because of the relationship between the P&L and the balance sheet employing the fundamental accounting equation.The learning outcome is to understand and be able to articulate the architecture that underlies the fundamental accounting equation and how it related to the balance sheet and the profit and loss statement. How the accounting system is all tied together universally and exactly the same for the smallest or biggest company. How this fundamental equation also applies to our own personal prosperity.
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