Accounting equation

Financial reporting - primary statements - bookkeeping.

The accounting equation follows from the double-entry principle of bookkeeping.

It is usually expressed as:

Assets - Liabilities = Equity

Alternative presentations of the accounting equation include:

Assets = Liabilities + Shareholders' Funds; OR

Assets = Liabilities + Equity

See also

• Assets
• Balance sheet
• Bookkeeping
• Double entry
• Equity
• Financial reporting
• Financial statements
• Liabilities
• Net assets
• Primary statements
• Share capital
• Shareholders’ funds