accounting equation



Assets = liabilities + owners' equity. The most fundamental equation of double-entry bookkeeping system, it expresses the relationship between what is owned and what is owed by an entity.

Use accounting equation in a sentence

  • Before I could run the business, my dad told me that I must figure out how to read an accounting equation.

    11 people found this helpful
  • When you want to try and figure out what your net worth is you can use the accounting equation to figure it out.

    6 people found this helpful
  • If you want to find out how much money you really are making you can use the accounting equation to find your bottom line.

    3 people found this helpful
Show more usage examples...

Related Videos

Have a question about accounting equation? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z