what is the balance sheet equation?
Balance Sheet Equation
The “balance sheet equation” is the most essential, central piece of bookkeeping. This
equation forms the building obstructs for the whole twofold section accounting framework. It is a
monetary explanation that condenses an organization's advantages, liabilities, and shareholders
value at a particular point in time. These three balance sheet sections give financial specialists a
thought concerning what the organization claims and owes and also the sum contributed by
shareholders (course, 2016). In its most essential frame, the balance sheet equation
demonstrates what an organization claims.