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What Is a Balance Sheet? What Is the Accounting Equation

question 44

Essay

What is a balance sheet? What is the accounting equation? Define each term in the accounting equation.


Definitions:

Debit

A debit is an accounting entry that increases an asset or expense account or decreases a liability or equity account.

Total Retirement

The total amount of savings, investments, and other financial resources a person has accumulated for retirement.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, a payroll tax that funds the Social Security and Medicare programs in the United States.

FICA-Medicare

The part of the Federal Insurance Contributions Act tax that is specifically allocated to fund Medicare, the United States’ federal health insurance program for individuals who are 65 years of age and older, certain younger people with disabilities, and people with End-Stage Renal Disease.

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