Accounting Identity

Accounting Identity is a kind of accounting related equality that’s needed is to be legitimate, even in light that the the related variable most likely are not consistent with the end result. In accounting, finance and economics, an accounting identity is an equality that need to be true regardless from the value of it is variables, or a statement that by definition need to be true. Where an accounting identity is true, any deviation by numerical equality signifies an oversight in formulation, computation or measurement.