Accounting Equation vs. Expanded Accounting Equation The accounting equation, expressed as Assets = Liabilities + Equity, serves as the foundation of double-entry accounting by ensuring that every ...

The accounting equation is: Assets = Liabilities + Owner's Equity. Assets are resources held by the firm. They may be physical (like inventory or equipment), financial (bank accounts) or even ...

The accounting equation is a basic concept that is often used to train accountants to take accurate records and check their work for any errors. Essentially, the accounting equation is assets ...