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Working capital is widely misunderstood

Working capital is a widely used but often misunderstood term. To teach it well, the term needs careful scrutiny. The problem starts, as it usually does, with language. ‘Working’ isn’t a helpful term. Working capital suggests that this capital works, and the rest of it doesn’t. ‘Capital’ is ambiguous and…Read more

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Phenomenon-based learning

Accounting Cafe online seminar on 19 November 2021 Liz Marsland is a trailblazer in phenomenon-based learning. She unpacks the methods, the challenges and the benefits to students and teachers in using this multi-disciplinary approach that has wide application across subject areas and throughout educational levels. Elizabeth Marsland CPA SHEA, from…Read more

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A pictorial presentation of a balance sheet showing assets of £50,000, liabilities of £30,000 and equity of £20,000.

The nature of equity

Of the five financial statement elements, equity is the most mercurial. In part, because it’s total amount is measured as the total of recognised assets less the total of recognised liabilities, expressed in this form of the accounting equation. Assets – Liabilities = Equity (net assets) Measuring total equity as…Read more

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