<p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><span style="font-family: Arial, sans-serif;">[size= 14.6667px; white-space-collapse: preserve]what is the accounting equation According to the accounting equation, Assets = Liabilities + Owner&rsquo;s Equity, the assets of a business include what it owns, and what it owes to others is liabilities. This equation means that assets are raised by liabilities (debt) or owner&rsquo;s equity (investment). To begin with, if a business spends $10,000 on equipment, acquires $6,000 of it on loan (and pays off) and $4,000 out of their own funds, the business&rsquo;s total assets rise by $10,000 while its liabilities increase by $6,000 and its equity by $4,000, keeping the equation in balance and showing where the business got the money. [/size]</span>

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