Accounting equation Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below: Assets = Liabilities + Stockholders' Equity To indicate: impact on the accounting equation and to ensure that the accounting equation remains in balance.

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Chapter 2, Problem 2.2BP

To determine

Accounting equation

Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below:

Assets = Liabilities + Stockholders' Equity

To indicate: impact on the accounting equation and to ensure that the accounting equation remains in balance.

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