Basic accounting equation

Double-entry bookkeeping

Basic accounting equation (or, simply, accounting equation; hereinafter, the byby) is Assets = Liabilities + Owner's equity; the same equation can be expressed as Owner's equity = Assets less Liabilities, etc. The double-entry method of bookkeeping is based on this equation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Basic accounting equation. Assets = Liabilities + Owner's equity.

Related concepts

• Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.

Related coursework

• Bookkeeping Quarter.