Bookkeeping – The Accounting Equation (Lesson 24)
The accounting equation is a simple formula used frequently in business. The formula is: Assets = Liabilities plus Equity OR Equity = Assets minus Liabilities.
The core essence of accounting is portrayed with the accounting equation; a formula depicting the basic fundamental relationship of the balance sheet accounts. It is: Assets = Liabilities plus Equity.
The accounting equation is a simple formula used frequently in business. The formula is: Assets = Liabilities plus Equity OR Equity = Assets minus Liabilities.