Here are examples to show how the accounting equation works. See how the accounting equation stays in balance as business transactions take place ...

In this post, we’ll explore the accounting equation in-depth and provide 25 example problems with solutions to help accounting students, beginners, and professionals understand how transactions …

Below are some examples of transactions and how they affect the accounting equation. CFI’s free accounting fundamentals course will help you better understand these examples!

In our examples below, we show how a given transaction affects the accounting equation for a corporation. We also show how the same transaction will be recorded in the company’s general …

Dec 12, 2025 · Learn the basics of the accounting equation (assets = liabilities + equity). See real-world examples, why it matters, and how it helps keep your books balanced.

May 17, 2025 · Each entry made on the debit side has a corresponding entry or coverage on the credit side. The accounting equation is also known as the basic accounting equation or the balance sheet...

Jul 10, 2023 · Accounting equation is simply an expression of the relationship among assets, liabilities and owner’s equity in a business. The general form of this equation is presented below: Assets = …

Sep 3, 2025 · The accounting equation—Assets = Liabilities + Equity—simplifies complex finances. We’ve covered the components, how it works, examples from consulting and construction, and tips …

Nov 25, 2025 · Learn the accounting equation with its meaning, formula, rules, and simple examples to understand how assets, liabilities, and equity stay balanced in accounting.

Dec 19, 2024 · The accounting equation— Assets = Liabilities + Equity —is the structural rule that underpins all double-entry bookkeeping systems. It ensures that financial statements remain …