Answers the Question
How is the company doing?
Calculator for Accounting Equation
What Is the Accounting Equation?
It's quite possibly the most important and most well-known formula in the world of accounting.
Why Is it Important?
- It serves as the foundation to double-entry bookkeeping and is useful for valuing business ventures.
Formula(s) to Calculate Accounting Equation
- ASSETS = LIABILITIES + CAPITAL
- Misclassification of items is common - both by accident and for nefarious purposes.