Accounting Basics 1
Below is the basic accounting equation:
Accounting Equation = assets + liabilities-owners equity.
Assets are whatever a business is owned to run a business. Assets are written under debit side of the balance sheet. Examples of assets are cash, accounts recievables, notes recievables, land, office equipments etc.
Liablities are what a business is owed to customers. These are generally written on credit side on the balance sheet. Examples are Accounts Payable, Notes payable, Dividends (if declared) etc
Owners Equity is whatever the company invested to start the business.
