Assets = Liabilities + Equity

This accounting equation is the foundation of double-entry accounting. If at any point this equation is out of balance, that means the bookkeeper has made a mistake somewhere along the way.

"Unlike single-entry, the double-entry system provides accountants with enough information to create all of the major financial statements, including income statements, balance sheets, statements of cash flows, and statements of retained earnings"

https://bench.co/blog/accounting/double-entry-accounting/

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• almost 2 years ago by vince