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 fundamental accounting equation includes intangible assets or those you can sell directly, such as your reputation, goodwill or brand. Advertisement. Article continues below this ad.

The fundamental accounting equation states that assets are equal to liabilities plus owners' equity. This is a critical concept in the double-entry system of accounting, which also requires that ...

Also known as the fundamental accounting equation or the balance sheet equation, it focuses solely on the relationship between its resources (assets) and the claims on those resources, ...

It's based on a fundamental accounting equation: Income = revenue - expenses. Effectively, the income statement is an accounting scorecard that illustrates the future profitability of the business, ...

It's based on a fundamental accounting equation: Income = revenue - expenses. Effectively, the income statement is an accounting scorecard that illustrates the future profitability of the business, ...

Also known as the fundamental accounting equation or the balance sheet equation, it focuses solely on the relationship between its resources (assets) and the claims on those resources, ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.