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Use the Power-Reducing Formulas
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Accounting Equation
The foundational equation of double-entry bookkeeping, stating that Assets equal Liabilities plus Equity, underpinning the structure of the balance sheet.
Asset
Resources owned or controlled by a business that are expected to produce economic benefits in the future.
Liability Accounts
Accounts on a company's balance sheet that represent the debts or obligations that it owes to others.
Stockholders' Equity
The portion of a company's capital that belongs to its shareholders, represented by the residual assets after deducting liabilities, often referred to as shareholder equity or owner's equity.
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