Accounting Equation
Core double-entry relationship linking assets, liabilities, and equity on the balance sheet.
Accounting terms for the accounting equation, expanded equation, accounting profit, and mental accounting framing.
Accounting Equation, Profit, and Behavioral Framing covers the accounting equation, expanded equation, accounting profit, and mental accounting framing.
Use these pages when an accounting method or principle changes how transactions are recognized, measured, compared, or interpreted in finance work. It sits inside Accounting Principles and Methods, so readers can move up when the broader accounting context matters.
Use the table below to choose the narrower accounting branch before applying a term to a statement line, model input, audit trail, tax schedule, covenant test, or management report.
| Area | Use it for |
|---|---|
| Accounting Equation | Core double-entry relationship linking assets, liabilities, and equity on the balance sheet. |
| Accounting Profit | Profit measured under accounting rules after recognized revenues and expenses, before adjusting for implicit economic costs. |
| Expanded Accounting Equation | Accounting identity that expands assets equals liabilities plus equity into owner contributions, withdrawals, revenue, and expenses. |
| Mental Accounting | Behavioral-finance concept describing how people separate money into subjective buckets instead of treating all funds as interchangeable. |
Accounting-principles content is educational and does not provide accounting, tax, audit, legal, investment, or valuation advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Core double-entry relationship linking assets, liabilities, and equity on the balance sheet.
Accounting Profit is an accounting method used to measure transactions, allocate costs, and support comparable reporting.
Expanded Accounting Equation is an accounting method used to measure transactions, allocate costs, and support comparable reporting.
Mental Accounting is an accounting method used to measure transactions, allocate costs, and support comparable reporting.