The accounting equation defines a company’s total assets as the sum of its liabilities and shareholders’ equity. It's the foundation of the double-entry accounting system.

The expanded accounting equation is derived from the accounting ... and teaches economic sociology and the social studies of finance at the University of Lucerne in Switzerland.Adam's new book, ...

Learn what book value is, ... These values are identical because the basic accounting equation requires it: Total assets must equal total liabilities plus shareholders equity.

When you’re thinking about how to balance your books, you might be trying to decide between double-entry or single-entry accounting. ... This system builds on the “accounting equation.” ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by ...

How Does the Payment of Dividends Affect the Accounting Equation?. Dividends represent the distribution of a company's profits to the company's owners -- its investors or shareholders.

The accounting equation is assets = liabilities + owner's equity. Accountants use this equation every day to determine how certain accounts affect a company's balance sheet or income statement. A.