Introducing The Accounting Equation With M&Ms

Abstract

On the first day of Principles of Accounting classes, students learn the fundamental accounting equation from which all financial accounting practice emerge. The accounting equation is the criterion by which companies are valued and by which company performance is measured. This activity simplifies assets, liabilities, and owners equity to the representation of M&Ms in order to focus on overall patterns of company structure and provides further illustration using real public U.S. companies assets, liabilities, and owners equity.