# Accounting Equation Calculator

## 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

## Common Mistakes

- Misclassification of items is common - both by accident and for nefarious purposes.