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Accounting Equation

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Revision as of 03:31, 5 August 2025 by WikiSysop (talk | contribs) (Created page with "The accounting equation shows the current financial position of a business and how much the owner's investment is currently worth. It is tightly related to the statement of financial position. The equation is as follows: '''Assets - Liabilities = Capital''' * Assets - What a business owns * Liabilities - What a business owes * Capital - The owner's investments and profit")
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The accounting equation shows the current financial position of a business and how much the owner's investment is currently worth. It is tightly related to the statement of financial position.

The equation is as follows:

Assets - Liabilities = Capital

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