The accounting equation, is the core of the balance sheet. It represents the relationship between assets, liabilities and owner’s equity. The standard accounting equation is Assets = Liabilities + Owner’s Equity. The accounting equation could be manipulated, and be used in different ways such as Assets-Liabilities= Owner’s Equity. Typically in a balance sheet, you would use this formula to find out the net worth/owner’s equity/capital of the person/business by subtracting the total amount of assets by liabilities.
acc 11. 