The basic accounting formula is: Assets = Liabilities + Owners’ Equity. This formula can also be written as:Liabilities = Assets – Owners’ Equity. Additionally, this formula can be written as:Owners’ Equity = Assets – Liabilities. When looking at financial reports for a company, you’ll notice that this formula represents the Balance Sheet. When looking at financial reports for a company, you’ll notice that this formula represents the Balance Sheet.

Author: Scott Meister, CPA

I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com

Certifications include:

Certified Public Accountant (CPA)
Certified Bookkeeper (CB)
Advanced Certified ProAdvisor for QuickBooks Desktop
Advanced Certified ProAdvisor for QuickBooks Online
Certified ProAdvisor for QuickBooks Enterprise
Certified ProAdvisor for QuickBooks Point Of Sale