The fundamental accounting equation is the basic accounting equation for a balance sheet. It is
Assets - Liabilities = Owners Equity
A - L = OE
or it is also known as
Assets = Liabilities + Owners Equity
A = L + OE
For example,if there was $13,000 for assets and $2,000 for liabilities, the owners equity would be $11,000 as it's the sum of assets subtracted from liabilities.
Assets - Liabilities = Owners Equity
A - L = OE
or it is also known as
Assets = Liabilities + Owners Equity
A = L + OE
For example,if there was $13,000 for assets and $2,000 for liabilities, the owners equity would be $11,000 as it's the sum of assets subtracted from liabilities.