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Formula sheet
Every formula in Elements of Financial Statements and the Accounting Equation, in one place. Print it and keep it beside you while you practise.
3.3 The Accounting Equation
Accounting equation
Assets = Liabilities + Equity
Rearranging the accounting equation
Assets = Liabilities + Equity
Rearranges to
Equity = Assets − Liabilities
Liabilities = Assets − Equity
Extended accounting equation
Assets = Liabilities + Capital + Income − Expenses − Drawings