Key Financial Components - Essay Example

The given paper shows that the total shareholders’ equity is $86,912mn and $84,143mn in 2010 and 2009 respectively (Verizon, 2010). From this the accounting equation can be presented as follows: 2010: $86,912mn = $220,005mn - $133,093mn 2009: $84,143mn = $226,907mn - $142,764mn AT&T Inc.: Upon examination of the consolidated balance sheet of AT&T, the key financial components of the basic accounting equation are presented here. The company’s total assets are $268,488mn in 2010 and $268,312mn in 2009 which implies an insignificant increase in 2010.

On the other hand, the company’s total liabilities are $156,538mn in 2010 and $166,323mn in 2009 which indicates a decline of 5.9% in 2010. This has contributed to an increase of 9.7% in the company’s net assets or shareholders’ equity that stands at $111,950mn in 2010 as compared to $101,989mn in 2009 (AT&T, 2010). From this financial data the accounting equation can be presented as follows: 2010: $111,950mn = $268,488mn - $156,538mn 2009: $101,989mn = $268,312mn - $166,323mn