This paper attempts to explain how an accounting equation evolves overtime. The paper looks at the accounting equation by using trade off theory and positive accounting theory lenses. The accounting equation is viewed as living or dynamic and changes according to human behavior or managers of company’s behavior. Regression model and descriptive statistics are used to show the relationship between total assets, liabilities and owners’ equity. The model is then used to show new form of accounting equation, rates of change of liabilities and owners’ equity. In this paper the writer finds new approaches or looks at accounting equation, the rates of change of liabilities and capital in relation to assets and shows the proportion of the two components of assets i.e. liability 64% and capital 36% to the asset. Finally the researcher explains the constant term which is not explained by authors of accounting field. This paper shows for the first time new form of accounting equation, different rates of change for the two components of assets and finally proportions of the owners’ equity/ capital and liabilities components on assets.
| Published in | Journal of Finance and Accounting (Volume 1, Issue 4) |
| DOI | 10.11648/j.jfa.20130104.11 |
| Page(s) | 55-63 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2013. Published by Science Publishing Group |
Accounting Equation, Capital Structure, Assets, Liabilities, Capital, Rates, Proportions, Tanzania
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APA Style
NTUI Ponsian Prot. (2013). Evolution of Accounting Equation: Evidence of Companies Quoted on Dar es Salaam Stock Exchange-Tanzania. Journal of Finance and Accounting, 1(4), 55-63. https://doi.org/10.11648/j.jfa.20130104.11
ACS Style
NTUI Ponsian Prot. Evolution of Accounting Equation: Evidence of Companies Quoted on Dar es Salaam Stock Exchange-Tanzania. J. Finance Account. 2013, 1(4), 55-63. doi: 10.11648/j.jfa.20130104.11
AMA Style
NTUI Ponsian Prot. Evolution of Accounting Equation: Evidence of Companies Quoted on Dar es Salaam Stock Exchange-Tanzania. J Finance Account. 2013;1(4):55-63. doi: 10.11648/j.jfa.20130104.11
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Download@article{10.11648/j.jfa.20130104.11,
author = {NTUI Ponsian Prot},
title = {Evolution of Accounting Equation: Evidence of Companies Quoted on Dar es Salaam Stock Exchange-Tanzania},
journal = {Journal of Finance and Accounting},
volume = {1},
number = {4},
pages = {55-63},
doi = {10.11648/j.jfa.20130104.11},
url = {https://doi.org/10.11648/j.jfa.20130104.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20130104.11},
abstract = {This paper attempts to explain how an accounting equation evolves overtime. The paper looks at the accounting equation by using trade off theory and positive accounting theory lenses. The accounting equation is viewed as living or dynamic and changes according to human behavior or managers of company’s behavior. Regression model and descriptive statistics are used to show the relationship between total assets, liabilities and owners’ equity. The model is then used to show new form of accounting equation, rates of change of liabilities and owners’ equity. In this paper the writer finds new approaches or looks at accounting equation, the rates of change of liabilities and capital in relation to assets and shows the proportion of the two components of assets i.e. liability 64% and capital 36% to the asset. Finally the researcher explains the constant term which is not explained by authors of accounting field. This paper shows for the first time new form of accounting equation, different rates of change for the two components of assets and finally proportions of the owners’ equity/ capital and liabilities components on assets.},
year = {2013}
}
TY - JOUR T1 - Evolution of Accounting Equation: Evidence of Companies Quoted on Dar es Salaam Stock Exchange-Tanzania AU - NTUI Ponsian Prot Y1 - 2013/12/20 PY - 2013 N1 - https://doi.org/10.11648/j.jfa.20130104.11 DO - 10.11648/j.jfa.20130104.11 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 55 EP - 63 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20130104.11 AB - This paper attempts to explain how an accounting equation evolves overtime. The paper looks at the accounting equation by using trade off theory and positive accounting theory lenses. The accounting equation is viewed as living or dynamic and changes according to human behavior or managers of company’s behavior. Regression model and descriptive statistics are used to show the relationship between total assets, liabilities and owners’ equity. The model is then used to show new form of accounting equation, rates of change of liabilities and owners’ equity. In this paper the writer finds new approaches or looks at accounting equation, the rates of change of liabilities and capital in relation to assets and shows the proportion of the two components of assets i.e. liability 64% and capital 36% to the asset. Finally the researcher explains the constant term which is not explained by authors of accounting field. This paper shows for the first time new form of accounting equation, different rates of change for the two components of assets and finally proportions of the owners’ equity/ capital and liabilities components on assets. VL - 1 IS - 4 ER -
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