Accounting equation, think about it!

Assets = Liabilities + Stock holders’ equity

This is the main accounting equation, it combine most of what accountants deal with. In business, I can say that assets are your properties and dues, while liabilities are the value that you give to customers in exchange of money, it’s your obligations and finally the equity is your money, your stocks in that business.

I know that the above explanation is so brief, but it might give you an understandable idea of the basic accounting equation. Now, can you apply this equation to your daily life, financial and non-financial basics?

Hmm,, take a breath and think about it, if you want more explanation about that equation, I would be so happy to do so.

In my next post I will start writing about it,

inspire me with your comments 🙂