Business and Personal Finance: Assets Equal Liabilities Plus Equity

The Accounting Equation – Assets Equal Liabilities Plus Equity This equation, which is at the very core of accounting, expresses one of the biggest accounting basics: everything must remain in balance. Changes in one side of the equation require changes in the other. The form of this equation comes from the basic idea that assets … Read more

Business and Personal Finance: Equity Means Ownership

The Accounting Equation – Equity Means Ownership When you first start a business, you (along with any co-owners) put some of your own assets into the company. Those original contributions form the first entries in your equity account and get your business on its way. Adding resources into the company is one way to beef … Read more