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Accounting Equation Education and Training

The fundamental basis for all accounting information comes from the basic accounting equation. This equation is assets equal liabilities plus owner's equity.

Accounting equation - Wikipedia, the free encyclopedia

The basic accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a  ...

Accounting Equation | Explanation | AccountingCoach

Part 1. Introduction to the Accounting Equation · Part 2. Accounting Equation for a Sole Proprietorship: Transactions 1–2 · Part 3. Accounting Equation for a Sole ...

Accounting Equation - QuickMBA

The accounting equation: assets = liabilities + owner equity ...

Accounting Equation Definition | Investopedia

Thus, the accounting equation is: Assets = Liabilities + Shareholder Equity. The balance sheet is a complex display of this equation, showing that the total assets  ...

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Accounting Formula - Balance Sheet Equation - Business Finance

The accounting formula is how double-entry bookkeeping is established. The accounting formula, also called the balance sheet equation, represents the ...

Accounting Equation - AccountingTools

Definition of the Accounting Equation. The accounting equation is the basis upon which the double entry accounting system is constructed. In essence, the ...

Basic Accounting Formula - AccountingTools

The basic accounting formula must balance at all times. If not, a journal entry was entered incorrectly, and must be fixed before financial statements can be ...

Accounting Equation - Concept and Detailed Examples

Double entry is recorded in a manner that the accounting equation is always in balance: Assets = Liabilities + Equity.

Accounting Equation | Basic Accounting Equation

In this lesson (and the next ones), you will learn about the basic accounting equation and how it stays in balance. Before taking this lesson, be sure to be familiar ...

The Accounting Equation - StudyFinance

The equation derives from assets and claims on assets. ... Using the accounting equation, if two of the three components are known, the third can be solved.

Balance Sheet Basics and the Accounting Equation - For Dummies

One type of accounting report is a balance sheet, which is based on the accounting equation: Assets = Liabilities + Owners' Equity. The balance sheet — also ...

Accounting Equation


In basic terms, the accounting equation demonstrates how business assets are financed. Every business transaction affects a company’s financial standing which is measured primarily based on assets, liabilities and owner’s equity or stockholders’ equity. The basic accounting equation is a simple way to show the relation between these three items.

The fundamental accounting equation definition is: assets equal liabilities plus owner’s equity or stockholders’ equity. Assets include items that are owned by the company, liabilities include amounts owed by the company and equity is the remaining amount after you deduct liabilities from the assets. Consider the following accounting equation resources to help you track your company’s financial position:

1. Get the facts on managerial accounting equations from an accountant or bookkeeper.

2. Find accounting equation templates to help with accounting formulas.

3. Purchase automated solutions for basic and expanded accounting equation reporting.

Obtain professional accounting equation advice

Seek consultation from an accountant or other financial expert for assistance with understanding basic accounting formulas. If you do not have money in your budget to obtain services from an accountant, try various online forums that allow you to ask accounting questions for free.

Order accounting equation templates

Accounting equation templates can help you easily and quickly understand all of the items that should be recorded for the accounting equation. Unlike the basic accounting question, the expanded accounting question allows you to see the affect of net income on your business equity as well as the effects of owner draws and dividends. The expanded accounting equation definition is: assets equal liabilities plus owner's capital plus revenues minus owner's draws.

Buy accounting equation software

Accounting software provides businesses with step-by-step instruction on how to correctly calculate various accounting formulas including the accounting equation. The software generally includes easy-to-use templates and reports designed to ease the stress of various accounting activities.

  • To ensure the accounting equation for your business is balanced, be sure to keep accurate records by recording all business transactions in a general ledger.

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