The Accounting Equation Shows the Relationship Among the Three Basic

question 71

True/False

The accounting equation shows the relationship among the three basic accounting elements-assets,expenses,and owner's equity.

---

Definitions:

Compounded Semi-Annually

Refers to the process where interest is added to the principal balance of an investment, loan or deposit twice a year.

Compounded Quarterly

Interest calculation method where the interest is added to the principal every quarter, affecting the calculation for subsequent quarters.

Principal

The initial amount of money borrowed or invested, excluding any interest or dividends.

Compounded Monthly

Interest on an investment or loan calculated and added to the principal amount on a monthly basis.