Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
The basic accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a business.It is the foundation for the double-entry bookkeeping system.For each transaction, the total debits equal the total credits.It can be expressed as.ow it shows owners' interest is equal to property (assets) minus debts (liabilities). Since in a corporation owners are shareholders, owner's interest is called shareholders' equity. Every accounting transaction affects at least one element of the equation, but always balances. Simplest transactions also include:
Accounting. 1  to close (an account) by crediting or paying all outstanding charges: He plans to cancel his account at the department store. 2  to eliminate or offset (a debit, credit, etc.) with an entry for an equal amount on the opposite side of a ledger, as when a payment is received on a debt.