Learn the Accounting Equation


What is the Accounting Equation?

The accounting equation is a formula in financial accounting. If accounts are kept correctly, then assets will always equal liabilities plus equity.

Accounting Equation for Sole Traders

Assets = Liabilities + Owners Equity

Accounting Equation for Corporations

Assets = Liabilities + Shareholders Equity

Learn more about the Accounting Equation by watching the above video. Alternatively watch our Accounting Equation video on YouTube - click here