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Mm150- Unit 9 Project

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Mathematics in Accounting: What you need to know

Contrary to many beliefs, you do not need the math skills of a “genius” to be a successful accountant. In fact, if you know how to add, subtract, divide and multiply, you are ready to venture into learning an accounting career.
“Mathematics is less related to accounting than it is to philosophy." -Leonard Adleman

Accounting is the system of recording and summarizing business and financial transactions, then analyzing, verifying, and reporting the results. It involves a lot of adding numbers together in designated groups, performing the calculations necessary and coming up with an end result. Because the information is constantly changing in the financial world, accounting is done on a daily, weekly, monthly, and yearly basis on different levels. Therefore the mathematics of accounting consists mainly of basic Algebra as well as knowledge of basic Statistics. Most of the math done in accounting is done with a program that does the calculations for you or is done on a computer, so processing the math on your own is not necessary. Today I will introduce the most commonly used algebraic equation in accounting that is found on the Balance sheet of the financial statements; The Accounting Equation.
Arithmetic: A branch of mathematics that deals with nonnegative real numbers including the transfinite cardinals; with the application of the operations of addition, subtraction, multiplication, and division.
Algebra: Generalization of arithmetic in which letters representing numbers are combined according to the rule of arithmetic.
Statistics: A branch of mathematics dealing with the collection, analysis, interpretation & presentation of masses of numerical data.

THE Accounting Equation

(Common version of the equation)
Assets= Liabilities + Owners Equity
“A=L+O”
(Extended Version of the…...

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