Accounting equation

Modified on Wed, 31 Jul at 11:45 AM

The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company's shareholders.


Thus, the accounting equation is: Assets = Liabilities + Shareholder Equity.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article