Sample battle · revision
Training Camp · Mission Brief
Accounting · The Accounting Equation
Every transaction keeps the books balanced: Assets = Liabilities + Owner's Equity. Assets are what the business owns; liabilities are what it owes; equity is the owner's residual claim.
Key terms
- Asset — A resource controlled by the business expected to bring future economic benefit.
- Liability — A present obligation to transfer economic resources.
- Owner's Equity — Residual interest in assets after deducting liabilities.
Memory trick: A = L + OE. Always Lean On the Equation.
Common mistake: Recording only one side of a transaction — every entry must keep A = L + OE in balance.
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