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[B]The Accounting Equation[/B]

The account equation simply put
[B]ASSETS = LIABILITIES + OWNERS EQUITY[/B]


Assets = what the business owns
Liabilities=What the business owes
Equity= The owners investment in the business.

This lesson follows on from the double entry you learnt in lesson one, for every debit there must be a corresponding credit entry in your books of account.

The accounting equation must always ...