What is a basic accounting equation?

Answer by  sudip (14)

The basic Accounting equation is Total Asset = Total Liability + Total owners equity. It can be elaborated in another form which is Total Asset = Total Liability + (Capital + Income - expenses) Example: purchased from MR.X of $5000. In this case Total asset has reduced and an expenses has occurred.

Answer by  Kurt (4579)

Assets + Expenses = Liabilities + Equity + Revenue Balance sheet = Assets = Liabilities + Equity + Net income ( Revenue less expenses ) Every entry has to balance.